Thanks for posting in the Community page, @shanbala99.
A way to track the Cost of Goods (COGS) is to make sure that there are income and expense details in your inventory items.
Also, you can manually track the value of your inventory assets in QuickBooks Online. To start, you can create an account to track your inventory value. Here's how:
Second Create an account to track your cost of goods sold.
When you purchase inventory using Checks, Expenses or Bills, use the asset account you created to track its value in the Account field. This "transfers" the money into the asset account, increasing the value of your inventory.
If you're using QuickBooks Online Plus, you can use the built-in inventory feature instead of tracking inventory manually.
You can refer to this article for further details: Manually track inventory.
Please let me know if you have any other concerns in QuickBooks Online, I'll be right here to help. Have a good day ahead!
When you set up your first inventory item in your Inventory List, the system automatically creates the Inventory Asset (Other Current Asset) and Cost of Goods Sold accounts.
Generally, COGS is affected only when you sell the items. This account isn’t meant for the items you use to create your products, such as raw materials.
If the items you bought are used to run your business or part of your inventories cost, you can record them as expenses. However, for those you buy and resell, you can directly add them to your Products and Services List.
If you want to replenish these items in the future, you'll have the option to use the Expense or Bill functionalities. Just make sure to use the item details field so you can select which one you need from the list. This way, the program will recognize an increase in volume.
You can refer to this article for more insights: Understand Inventory Assets and COGS tracking.
Fill me in if you have other questions. I'm always here to help.
I am new with quickbooks, and trying to build it for my e-commerce business.
But I am stuck on several things..
1- I sell for ex: at ebay & shopify,, So I found several ways to do it,,
So now I became confused, which is the right way to do it....
Putting in mind that I need in reporting: COGS to be linked to each account...
It is as if I have several branches or stores, so I need to know the full image for each one.. To link each with their.expenses..
I need to know more about the differences if I used those options..
Thanks for your support
Hello, Alfred Guirgis.
Allow me to dive in and share information about COGS in QuickBooks Online. 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).
You then assign the necessary inventory items to these accounts so that you can accurately track what you have in stock, and know exactly how much you've spent and earned with it.
Though, I still suggest reaching out with your accountant to give you a snapshot of the exact account that would be assigned to prevent any discrepancy in your book.
To learn more and understand the workflow of Chart of account in QuickBooks, you can refer to this article: Understand the chart of accounts in QuickBooks.
However, for option 3, Projects help track income, expenses, profitability, and organize all job-related information in the account in one place. You can create projects for multiple customers and add certain transactions such as estimates, invoices, expenses, bills, purchase orders, or time.
On the other hand, class and location tracking monitors income, expenses, and reports for different segments or locations of the business.
For more information about these features, check out the following articles:
Lastly, you can also reach out to Shopify to guide on ways of syncing your data.
As always, feel free to let me know if you have other questions about QuickBooks Online. I'd be happy to help. Have a great day, and be safe always!
Hey Gerald 6,
Thank you for reaching out to the QuickBooks Community. I was able to pull up my test account to verify this. You are correct in saying that the product would need to be set as an inventory to get COGS, gross margins, and gross margin % in the Sales by Product/Service Summary Report. If you ever need to customize a report, this article is very resourceful.
Please do hesitate to let me know if you have questions. I will be here to assist. I hope you have a lovely day!