Cost of Goods

Hello @artist_in_NC,

Ideally, the amounts displayed of an account in your reports is base on the transactions you created. Updating the amount of your items doesn't post any changes with it.

With this, you can create a journal entry to zero out your COGS account. But I'd still recommend contacting your accountant for additional assistance about how you can zero out your account.

1. Go to the +New button.
2. Under OTHER, select Journal Entry.
3. Select your COGS account.
4. Enter the adjusting amount you wanted to zero out.
5. Click Save and close.

In addition, here's an article you can read to learn more about creating a journal entry: Create a journal entry in QuickBooks Online.

Lastly, I've got you these helpful articles for ideas about how you can manage your reports and accounts: Reports and Accounting for QuickBooks Online.

If there's anything else that I can help you with, let me know by leaving any comments. I'll be happy to lend a hand.

@artist_in_NC 

You can not edit the item and reduce the cost of the item.  The cost you see in the cost block is the most recent purchase price usually.

Use inventory adjust, and lower the qty to zero, that will get most all of the costs out of the items and expense them this year.  I say almost because QBO has a number bug in inventory, if the total cost of the item is not evenly distributed to each item the excess will remain.  ie 10 /3 = 3.33333