I can bring some clarity to your question on why Cost of Good Sold (COGS) for your purchased items are not showing up in the Profit and Loss report.
When running cash basis report for Profit and Loss, COGS will only show once a payment is applied to the invoice. You do not get a post to COGS until you sell an inventory item. The purchase on inventory will affect Inventory Asset account.
Also, please know that the cash basis reports will use the invoice/bill date. If this doesn't show in cash basis, it will show when you run accrual basis report.
Here's how to run your Profit and Loss report.
Go to Reports.
Click Company & Financial.
Choose Profit & Loss by Class.
Choose Cash as your Report Basis.
Fill me in if there's anything else you'd like to know more about running Profit and Loss report in QuickBooks Desktop. I'd be glad to help you out.
COGS not showing up in P/L by class report when using cash basis
ok thank you. We are trying to use class tracking to determine the overall costs associated with used cars that we purchase, rehab and then sell. Prior to sale, we would like to see the total costs of each car to help us determine a selling price. Is there a way to accomplish this?
Yes, there is a way to see the total cost of an item when pulling up a report in QuickBooks. You'll just need to include the amount of the cost when creating your inventory item. If you've already created one, you can still edit the item.
Here's how to successfully track inventory:
Make sure to fill in the details in the item.
You can add a class by clicking the drop-down arrow for the Class field.
Choose an Inventory asset account.
Make sure to include Sales price/rate and Cost amount.
Click Save and close once done.
Then, pull up the Product/Service List report to track your inventory cost.
That should do it. Please let me know if you have other questions about tracking inventory. I'm just here if you need help.