COGS Income Account/Expense Account Question

I suggest you create in the chart of accounts, an account titled "Cost of Sales" it would be a COGS TYPE account.

Things you pay for that is related to a job and not stocked post to that account.

COGS, at tax time, means the cost of items sold that were in inventory. So for inventory type items the accounts are
asset = inventory asset
expense = COGS
income = Sales or product sales (an income type account)

Thank you for the reply.

So just to clarify and make sure I understand correctly. For items that I do not stock I would create a new account in my chart of accounts. It would be a "Cost of Goods Sold" account type. It asks for a detail type, so I would choose "Supplies & Materials"? Then I can just name it "Cost of Sales" or "Cost of Material Sales"?

As to the items stored in inventory I would choose an "Asset" type account. Then under the detail type I would choose "Inventory", and I could name it "Truck Material Stock" or something. 

Then when I enter an inventory product it gets assigned to the "Truck Material Stock" asset account. The income account would be "Sales or Product Sales" and the expense account would be "COGS". 

I think I understand it now, and appreciate the feedback!