Hello there, Haseeb.
Thanks for getting back to us. Allow me to chime in and share information about importing invoices and purchase items in QuickBooks Online (QBO).
Inventory Cost of goods sold (COGS) is affected when you sell inventory items on invoices or sales receipts. This offsets the decrease in your Inventory asset account, and the other accounts affected will be an income account as well as the Accounts receivable account.
Additionally, COGS depends on the purchasing transaction's cost. If you haven't entered an expense for the inventory item, COGS will show a zero amount when added to the invoice. Then, if there's no initial cost on the inventory item, there's no amount on COGS when sold.
You can consider creating a journal entry to transfer money from an asset, liability, or equity account to an income or expense account. However, I suggest consulting your accountant for further guidance with selecting the proper account to use. Refer to this article for more information: Create journal entries in QuickBooks Online.
To know more about how the Inventory feature works, consider checking out these articles:
For more tips and other resources you can use in the future, I recommend visiting our website: Self-help articles.
Please post again or leave in this thread if you have more questions about this or anything else. I'll be more than willing to assist. Take care.
