Thanks for helping me see that.  

Yes...this is maddening. The CPA wants my client's books in Cash Basis, but there is NO way to get a proper report that way. I have no solution, but wanted to affirm your issue!

Hello there, @Brant Bookkeeping.

Thank you for joining this thread and providing some feedback. Allow me to step in and share some insights about tracking COGS in QuickBooks

The cost of goods sold (COGS), also referred to as the cost of sales or cost of services, is how much it costs to produce your products or services. COGS include direct material and direct labor expenses that go into the production of each good or service that is sold.

For  future reference and to learn more about COGS in Quickbooks Online, you may check these articles below: 

• Impacts of inventory tracking on balance sheet and profit & loss reports.
• What is FIFO and how is it used for inventory cost accounting?

Please let me know if you have any other questions and concerns. I'll be around to keep helping. Have a great day!

GraceC, I realize that I'm months late posting to this thread, but I have also seen that the only way to get an accurate report on COGS in QBO is to run an accrual-based P&L.  The problem is that there are many small businesses who are on cash-basis accounting who have inventory and would want to see an accurate cash-basis P&L.

I used to use QB Pro and never had this problem in that version.  Is there some reason why QBO can't offer the same functionality?

Hi @theaccountableartist,

We recommend customizing your P & L report and change it from cash to accrual basis. This is so you can see the correct gross profit amount. 

As for the difference in the features available, this is due to the QuickBooks Desktop product being around longer compared to QuickBooks Online (QBO). Rest assured, our product engineers are working to integrate new features.

You can visit this page to stay updated on new features released for QBO: The QuickBooks Blog.

I also recommend checking out this article: Impacts of inventory tracking on balance sheet and profit & loss reports. It has a list of reports that we suggest you run them on an accrual basis.

Is there anything else I can assist you with? Place them in the comments below, and I'll get back to you.

I have read all the previous comments, but it hasn't answered the problem I am having.  My client has coded bills directly to the COGS account.  The bills have been paid.  When I run a cash basis P&L, COGS shows up.  When I run an accrual basis P&L, COGS is zero.  This makes no sense to me.  It is not related to inventory.

Thanks for reaching out to the Community, jantco.
 

When your items were created, if they had a quantity on hand added to them, this will have a zero cost and will show up on profit & loss reports.
 

Here's how to get the cost to show up on these types of documents:
1. In the left navigation bar, go to Sales, then Products and Services.2. Locate the item you want to correct and hit Edit.
3. Scroll to find the Starting Value hyperlink. Once found, click on it.4. Enter an amount in the Initial cost field.
5. Select Save and close.
 

You'll want to repeat these steps for each entry. While doing so, also make sure there's a cost entered for all records. After you've finished, you can run a new P&L report to show costs.
 

I've included a link to our QuickBooks Online help article archives. Many different resources can be found there which may come in handy moving forward.
 

I'll be here to assist if there's any other questions. Enjoy the rest of your day!

Hi, I don't know how to ask a question on this forum, and I]ve seen that you have answered a lot of other questions.  My question is, how do I run a sales by item detail with COGS, (cost of goods sold), on it?  I'm completely baffled, and can't find the answer anywhere.  I am using quickbooks desktop manufacturing and wholesale edition.

Jennifer K

You’re doing okay posting your question in the Community space, @Jennifer.

Allow me to share with you some steps on how to achieve this. To do so, you’ll want to run the Sale by Item Detail report and export it to Excel. From there, add a column for the Cost of Goods Sold (COGS). Then, run the Sales by Item Summary report or Profit & Loss report (go to the COGS section) for reference.

The Sales by Item Summary report shows you the breakdown of items or services that's been sold and the total sales. Nonetheless, here's how to export a report from your QuickBooks Desktop (QBDT) software:

1. Go to the Reports menu.
2. Select Sales and click Sales by Item Detail.
3. Click the Customize Report button and made some customization if necessary.
4. Then, click the Excel drop-down menu and select Create New Worksheet.

You can also refer to this article for more details about exporting reports: Export reports as Excel workbooks in QuickBooks Desktop.

Additionally, here’s an article you can read to learn more about managing your reports in QDBT: Understand reports.

In case you have other questions about reports in QBDT, you can always post your question in this thread. I’m only a post away from you. Keep safe!

I am having PRECISELY this problem in QBO. 

Good afternoon, @frankpicarazzi. 

Thanks for joining in on this thread. It's my priority that you're able to get the correct information in the COGS section of your Profit and Loss report. 

Since you're unsure of what's happening within the COGS and you've tried the additional steps that my colleague provided above, I recommend contacting our Customer Support Team. They'll be able to use a screen share and walk you through some more instructions to help resolve this problem. 

Here's how: 

1. Go to the Help icon in the top right-hand corner. 
2. Press the Contact Us button. 
3. Type in your question and hit Let's talk. 
4. Scroll down and choose to Get a callback. 

It's that easy. You can also check out our tutorials page to see other details about other available features in your QuickBooks Online (QBO) account. 

Let me know if this helps. I want to ensure that you're able to get back to running your business. I'm only a few clicks away if you need me. Have a great weekend!