Non inventory item set up

Thank you for posting this here in the Community, @HED1. It’ll be my pleasure to share what I know about your query.
 
In order for us to update the amount of the existing transactions in your account. We need to manually open the bills, checks or expense and then enter the correct numbers.

 Here’s how:

1. Go to the bill, expense or check.
2. Navigate to the amount section and then enter the amount.
3. Once done, click Save and then close.

You can refer to this article, this is about how to find, review, and edit transactions in account registers.

In case you want to view transaction changes in the audit history, you can visit this article.

Feel free to reply to this post if you need a hand with inventory adjustments or any QBO related. Assistance is just one click away. Have a great day.

Thank you. However, I'm not sure I explained myself as well as I could. It all started when looking at my P&L. I didn't feel like my cost of goods was high enough so I felt like there was a setting issue. I realized that I use the same item on both invoices for my clients and for purchase orders for vendors. Before today, I didn't have the "this item is purchased for and sold to a client" box checked in my items list, so I thought that would solve the problem. After I checked that box for all my items I expected to see my retail sales go down and my COGs to go up. The COGS went up, but so did my retail sales which was odd to me. So I'm not sure this is fixing the issue. 

Thanks for the additional information, HED1.

Let me share some insights on how non-inventory items work in QuickBooks.

Please know that the Cost of Goods Sold account is only affected when you sell inventory items on invoices or sales receipts. Non-inventory items are used for the materials or parts you buy and sell but don’t intend to keep inventory on hand. They don't directly affect the COGS account.

For these items, the cost is recognized as you purchase the item by including it on a purchase transaction, such as a bill or check. Additionally, you will only see the cost of your non-Inventory items on your Profit & Loss statement after they have been sold.

If the items are generic stocks, you don't need to tick the This item is used in assemblies or is purchased for a specific customer:job checkbox. If you purchased them for specific customer jobs, then you'll have to select this option. This will change the fields available. They'll become the same fields shown when creating inventory part items.

After entering the purchase information and sales details, you'll be able to use the item in both purchase and sales transactions. This is the reason why your GOGS and retail sales went up. 

For more tips while working with your inventories in QuickBooks Desktop for Mac, you can browse a topic from this page: Running your business / Inventory.

Let me know in the comment section if you have any other concerns or follow-up questions. I'll always have your back.

Thank you, that is helpful. So since we don't have any inventory items, all our non-inventory items for resale should have the box checked, is that correct? And will I still use COGS for the expense account?