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Join nowI have a SaaS company and I am trying to run a P&L report that shows Gross Profit that includes Customer Support expenses. Eg.
Product Revenue $4,000
Service Revenue $10,000
Total Revenue $15,000
Product Cost $2,000
Customer Support $10,000
Total COGS $12,000
Gross Profit $3,000
Hi there, abbati77
I can provide some insights and explain how accounts appears through a Profit and Loss report in QuickBooks Online.
In a Profit and Loss report, the accounts and amounts posted can differ based on the type of account used. For example, the Cost of Goods Sold (COGS) account is reported separately and is included in the Gross Profit calculation. Other expense accounts are categorized under the Expenses section of the report.
That means the Profit and Loss report's specific accounts and corresponding amounts are determined by the expense accounts assigned to each product or service item in QuickBooks Online. When you set up your products or services, you can select the appropriate account for each item, which affects how those expenses appear in the report.
Therefore, if you want to add or show a Customer Support expense under the Product Cost or Cost of Goods Sold (COGS) in the Profit and Loss report, you would need to create a separate COGS account with the name "Customer Support" and associate it with an inventory item used in an expense transaction.
Furthermore, it's important to review and ensure that the correct expense accounts are assigned to each product or service item to accurately reflect your business's financial performance.
You can also export your report to an Excel spreadsheet if you want to show specific accounts differently, as customizing it in QuickBooks isn't possible. Here's an article for more information: Export your reports to Excel from QuickBooks Online.
If you have any further questions or need additional assistance, please let me know. Have a great day!
I really appreciate the feedback. I not sure I still understand how Customer Support cost get allocated to COGS. Going back to my example, if I have $10,000 in CS costs all charged to the CS department and those cost are made up of Labor, Travel , Facility expenses etc., how do those costs get allocated to COGS. I can't figure how how to move costs from a department to COGS. Am I making sense? In your explanation I would need to create an non-inventory accounts called CS for those cost to be allocated to COGS.
I appreciate you for returning to this thread and providing an update about your concern, @abbati77.
Let me join in and provide additional information about the Cost of Goods Sold (COGS) in QuickBooks Online (QBO).
To begin with, every time you sell your inventory items through invoices or sales receipts, the Cost of Goods Sold (COGS) is affected. If you want your expense to be allocated in COGS, you'll have to create a non-inventory or service item and then use your COGS account. Also, to allocate the expense, you'll have to create a check or expense and use the item that you created so it'll reflect your expense in the COGS account.
In addition, I also recommend consulting your accountant for the other option or more accurate information.
For future reference, you can check this article to guide you on how to customize reports and focus on the details that matter the most to you: Customize reports.
Let me know if you have additional questions about COGS or other QBO-related concerns. I'll be here to assist you.
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