Hello, Cristian.
Let's investigate why the Cost of Goods Sold (COGS) account is displaying a negative amount in your Profit and loss (P&L) report.
It's possible that you used an expense account when purchasing an item. You can click on the COGS amount to view the transaction and drill down into the report.
Next, switch the account of the item to an income account and ensure that past transactions are updated. Allow me to demonstrate how to do this:
- In QuickBooks Online (QBO), go to the Settings ⚙ at the top right.
- Select Products and Services.
- Under the Action column of the appropriate item, click Edit.
- From the Income Account ▼ drop-down, choose the correct account.
- Select the Also update this account in historical transactions checkbox.
- Hit Save and close.
Once done, try to pull up the P&L report again to double-check. You can also refer to this article for further guidance: Run reports in QuickBooks Online.
Generally, the COGS is impacted only when you sell items. This account is not intended for the items you use to create your products, such as raw materials. For more detailed information, please consult this article: Understand Inventory Assets and COGS tracking.
To accurately calculate your profits and expenses, here is a guide: How to calculate and record COGS.
Please let me know if you have additional questions about your COGS account on the report or anything else QuickBooks, Cristian. I'll be here to assist. Take care.
