We have a door manufacturing company and have been using the "billable" box and then selecting the "Add Time/Costs" when invoicing. We use this when ordering special order items to keep up with who is getting charged for what. The special order item code that we use when billing and ordering is set up at a non inventory item with COGS as the expense account and Sales as the income account. I'm needing to see if this will have a negative effect on our COGS account or with reports.
I'd like to share some insights about how a non-inventory item reflects on your reports in QuickBooks Desktop.
If you've used an expense account for a non-inventory item in QuickBooks Desktop, it will only affect your COGS/reports if you processed an expense transaction. However, if you created an invoice, this won't have a negative effect on your COGS nor reports.
To give you more details about the sources and targets of the transactions and reports in QuickBooks, please see these links below: