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Replying to:
JoesemM
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Hello there, Cking13.

 

QuickBooks Online (QBO) treats COGS (Cost of Goods Sold) differently from regular expenses to give you a clearer picture of your business's profitability. COGS reflects the direct cost of producing or purchasing the goods you sell which includes the cost of materials, parts, and labor directly involved in making the product.

 

Also, COGS gets subtracted from your sales to show your gross profit, not added to your revenue. Even though COGS appears in your sales figures in QBO, it ultimately gets subtracted to determine your gross profit.

 

On the other hand, could you please indicate the part in the COGS that reflects revenue? Adding a screenshot would be helpful for clarity and accuracy in resolving your concern.

 

I'll add these articles to learn more about how the cost of goods sold works in QuickBooks Online: 

 

 

I'm just a post away if you have any more questions about tracking entries in QuickBooks. I'm here to help. Have a great day!

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