I got this back from my accountant.
Your Profit & Loss report is showing the correct amounts. It'll be my pleasure to provide some details about this.
In the calculation of your Cost of Goods Sold (COGS), freight charges are not included. The COGS calculation only includes the costs of your items. This said, freight charges are a separate line item from your inventory items when entering transactions.
Feel free to leave a comment below if you have any other concerns. I'll be here to help.
Hi there, @Anonymous.
I appreciate you coming back to us for additional support. Allow me to join this thread and clear this up for you.
As mentioned by my colleague, inventory COGS is only affected when you sell inventory items on invoices or sales receipts. Freight charges are not included in the calculation of the COGS.
However, if you wish to add the freight charge on your COGS amount, you'll have to edit the account associated to your items. I'd still recommend seeking an accountant for an expert's advice to ensure there will be no problem with the books in the future.
Keep me posted on how these steps work out for you. I'll be here to keep helping if you have additional questions. Just leave a comment for me. Have a good one!
Hello again, Norm758.
The Gross Profit amount is the sum of your Total income and Total COGS.
195, 048.71 + 31, 184.32= 226, 233.03
To understand and learn more about the accounts in QuickBooks, I recommend checking out the link below. Your accounts are based on the industry and type of company you choose when you set up your business.
Keep me posted if you have additional questions about reports or accounts. I'm still here to help you more.
So my ongoing research indicates that my merchandise purchases should not be showing up as a negative number, that seems to be what's throwing things off. Can you walk me through how to set up purchasing inventory for resale?