Hi there, cthomas3.
I'm glad to provide information about how the Cost of Goods Sold (COGS) work in QuickBooks Online.
If any type of transaction makes a value on the inventory, this will generate a COGS. Even the cost of a product is set to zero.
The Cost of Goods Sold is affected once you have sold inventory items when using invoices or sales receipts. And, if you have entered a QTY with its total Value, this will generate the COGS as well based on the value you have entered.
For additional information, you can refer to this article: Understand inventory assets and cost of goods sold tracking.
Please check these articles to see steps o how you can track your inventory and how inventory tracking has specific impacts on your Balance Sheet and Profit & Loss reports:
Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.
