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Leslie7
Level 1

Account Type Changes for Profit and Loss Statement

How do I rename an Account Type in Quickbooks Pro 2017?  I.E.  "Cost of Goods Sold" to "Cost of Revenue"?

 

7 Comments 7
AldrinS
QuickBooks Team

Account Type Changes for Profit and Loss Statement

Hi there, Leslie7.

 

I'm here to provide some insight about changing the Account Type of Cost of Goods Sold.

 

At this time, the option to change account type for this account is not available. Cost of Goods Sold is one of the default accounts created by QuickBooks the moment you'll create an inventory item.

 

I can see how having this option would make it easier for you, and others, to get a better look at the details on your Profit and Loss report. Rest assured, I'm going to submit a feature request from my side, which is sent to the Product Development Team. They're constantly looking for great ideas from users, like yourself, when deciding how to enhance QuickBooks.

 

Please let me know what else I can do to help you today. Thanks for coming to the Community, wishing you continued success in all that you do.

qbteachmt
Level 15

Account Type Changes for Profit and Loss Statement

Open your Chart of Accounts. Edit that account and Rename it. You don't get to change the Type. You get to Name it to meet your needs.

kenlinatusa
Level 2

Account Type Changes for Profit and Loss Statement

when can we rename the type or have cost of services in the drop down list?

FritzF
Moderator

Account Type Changes for Profit and Loss Statement

Greetings, @kenlinatusa.

 

Thanks for joining this conversation. Allow me to chime in for a moment and share some information about changing an account type in QuickBooks Desktop (QBDT) chart of accounts.

 

As my colleague mentioned above, this option is currently unavailable in QBDT. We also don't have a firm timeline for when this will be available. At this time, you can only change the name of that account but not the account type.

 

For future reference, you can check out this article and scroll down to Common Chart of Accounts tasks for more information: Understand QuickBooks Chart of Accounts.

 

This should answer your concern. Please post again or leave a comment if you have any other questions. I'm always here to answer them. Wishing you all the best!

nelda1
Level 1

Account Type Changes for Profit and Loss Statement

A major problem with this is that the "Cost of Goods Sold" type of account is counted as income and not expense. Is there anything I can do to change this situation?

AileneA
QuickBooks Team

Account Type Changes for Profit and Loss Statement

Hello, nelda1. 

 

Let me share some insight about COGS. Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs. That said, the inventory that is sold appears in the income statement under the COGS account.  

 

However, If the items you bought are used to run your business or part of your inventories cost, you can record them as expenses.

 

To learn and understand how COGS works in QuickBooks, please check out this article: Understand inventory assets and cost of goods sold tracking.  

  

As always, feel free to let me know if you have other questions about QuickBooks. I'd be happy to help. Have a great day, and be safe always!

kilvian
Level 1

Account Type Changes for Profit and Loss Statement

This is particularly important for nonprofit organizations, as these labels change for most groups.  If renaming is not available, I find it difficult to believe that there is no option to at least create our own account types in QBO.

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