For cash acctg, how can I run P&L to show COGS correctly? The P&L cash basis shows COGS as the value of all inventory. It should only show the cost of products sold.

Hello there, @beth49.

Allow me to share some information about running the Profit and Loss report in QuickBooks Online.

The profit and loss report is the record of your income and expenses for the year. It also indicates how the revenues transformed into the net profit.

A cash basis is a transaction where you already receive the payment and record it as paid. While, for accrual basis, it's a transaction that recorded as paid but you didn't receive the payment yet.

You might want to use these articles for more detailed information about profit and loss report:

• Run a Profit and Loss report by bank account in QuickBooks Online
• Run a Profit and Loss Comparison Report

If you have additional questions, feel free to leave a message in the comment section. I'm always around here in the Community to help. Keep safe, and have a good day.

Thanks, but I already understand cash v accrual.   What I need to know is specific to Cost of Goods Sold (COGS).  When I run P&L cash basis, the COGS includes the cost of products which have not yet been sold.  It should only include the cost of products actually sold.  

I can clear things out for you why the cost of products is showing under the COGS account, beth49.

QuickBooks will show the purchase cost of the product when you run the report in Cash basis. While the COGS from the invoice when sold will appear on the report when run it in Accrual basis.

You'll want to run the Transaction Journal Report to see how QuickBooks debits and credits your accounts when you sell inventory items.

Check out the Understand inventory assets and cost of goods sold tracking page to learn more on how QuickBooks handles your inventory items.

Let me know if you need anything else with the report, and I'm always right here to help.