Thanks for posting here, @jaymew3. I'd be glad to answer your question about moving off the balance sheet to P&L.
Costs of Goods Sold (COGS), tracks all of the costs associated with the items you sell, which allows you to calculate gross profits accurately. COGS accounts also give the total underlying costs on your Profit & Loss reports. In QuickBooks, you create new accounts through the Chart of Accounts (COA).
For your question, yes, creating a Journal entry will work. This way, you can move a lump sum amount. Also, I suggest consulting your accountant to further determine whether it is the correct process or they have other options to recommend.
You can refer to this article for more information about the impact of your inventory tracking on your balance sheet and profit & loss: Inventory tracking.
Fill me in if you have other questions about managing COGS in QuickBooks. I'm always here to help. Have a nice day!
