Non-inventory Parts

Hello, @CKS_Finance_Team. I'm here to help you reflect the Cost of Goods Sold (COGS) for non-inventory items on the Profit and Loss (P&L) report.

Usually, the COGS is only affected when you sell inventory items on invoices or sales receipts. However, the income from non-inventory items will still be displayed on the P&L report. Let me guide you how.

1. Tick the This item is used in assemblies or is purchased for a specific customer:job checkbox.
2. When pulling up the P&L report, set the Report Basis to Accrual.

Non-inventory items increase COGS once payment is made to the vendor, unlike inventory items which increase it automatically upon sale.

For more detailed info about COGS, feel free to visit this article: Understand inventory assets and cost of goods sold tracking.

In case you want to personalize your reports, you can check out this article for more guidance: Customize reports in QuickBooks Desktop.

If you have any further concerns or questions about how to reflect the COGS for non-inventory items in the P&L report, feel free to leave a comment on this thread.

@CKS_Finance_Team 

Non-inventory items are expensed at the time of purchase (accrual basis) or at the time of payment (cash basis).  They will post to the account selected under 'Expense account' on the item set-up screen.  If you want those items to post to COGS at the time of sale, they need to be set up as inventory items.    

@jeanbiverly_   RE: Ensure that the Income Account for the non-inventory item is set to COGS.

Huh? No, that will mess everything up.  Don't do that!