Hello, I need some help on how to account for COGS. I manually enter the monthly sales and inventory but I don't know how to match it with COGS. Thank you

Let me share some information about Cost of Goods Sold, info.

When you sell inventory items on invoices or sales receipts your Cost of Goods Sold (COGS) will automatically affected or matched. 

You can run the Journal Report for the invoice/sales receipt. From here, you'll see the Sales/Accounts Receivable transaction and Inventory/COGS transactions. Here's how to run the report:

1. Go to your Reports tab from the left menu. 
2. Search for Journal from the search box, then run the report.

Hello - what is the best way to quote and realize profit in QBO with drop-ship?  For example, I buy an item for $1,000 and sell it for $1,200, but I have it shipped directly to the customer - it is not inventory for me.  I want to create an estimate for the customer to show them the $1,200 cost, but how do I account for my cost so that the books balance correctly?  I am happy to enter the items as inventory, but am still unsure how to enter my cost as well as sales cost so that it works out.  Thanks.

We'll need to add the item first, jwhit74.

This way, we can set up the cost and the sales price of the item. Also, this is to assign which Income and Expense account it will be posted. You can follow these steps:

1. Go to Sales tab and Product and Services.
2. Click New and select either Inventory or Non-inventory.
3. Fill out all the details needed. Enter $1,200 in the Sales price/rate box and select the correct Income account.
4. Enter $1,000 in the Cost box and select the correct Expense account.
5. Click Save and close.

If you'll create an estimate, make sure to convert it into an invoice. Estimates are non-posting transactions which means it won't affect your books. You can open the estimate and click on Create invoice button.

Also, we can create either a Bill or Expense transaction to record the cost. From the Plus icon, select either of the two. 

Once done, we can pull up your Profit and Loss report. This will show us your total revenues and costs. Go to Reports tab and select the said report. If you'd like, you can also customize the reports in QuickBooks Online.

You know where to go if you need clarifications. I'm here to guide you.

There is no Cost field when I enter a product. I see a cost field in the list of products, but cannot edit it. When I create an estimate and choose the product, it prefills the rate with the sales price/rate. Thanks.

Thanks for getting back to us, @jwhit74.

When adding an inventory item, you have an option to add a cost to a product. Check out my screenshot for visual reference:

Once a value is entered into the Sales price/rate box, QuickBooks auto-fill the information when added to a transaction. 

I recommend checking out these articles about managing items for reference:

• Add your inventory products.
• Edit a product or service.

However, if you're unable to find Cost when adding or editing an inventory item, I recommend performing some basic troubleshooting solutions. 

Sometimes the cache stores up in the system causing unusual behavior in the product. You can start by accessing QBO using a private window. 

Here are the keyboard shortcuts:

• Ctrl + Shift + P (Internet Explorer)
• Command + Shift + N (Safari)
• Ctrl+ Shift + N (Google Chrome)
• Ctrl + Shift + P (Mozilla Firefox)

Once done, go to the Products and Services screen and add or edit an inventory item. If it's now showing on your end, I suggest clearing the default browser's cache to fix the unusual behavior. Here’s an article to help with the process: Delete browser cache and temporary Internet files.

Otherwise, switch to a different browser like Firefox, Internet Explorer, Google Chrome, or Safari. The one you are currently on may be having a temporary issue with QuickBooks, and using a new browser in the meantime will allow you to get back to work.

Please post again in the Community if there's anything else you need. I'm always available to help. Have a good one!

I am using the Quick Start version.  Looks like I need Plus to have these inventory controls, is that perhaps my issue here?

Thanks for the clarification, @jwhit74.

And yes, you'll need to have the QuickBooks Online (QBO) Plus to have the Cost field in the Product/Service Information page. This way, you'll be able to account for the cost of the item. Let me show you how.

To upgrade your QBO:

1. Click the Gear icon.
2. Select Account and Settings.
3. Select the Billing and Subscription and click the Upgrade your plan link.
4. Follow the onscreen steps to finish the setup.

In case you don't want to upgrade yet, you can always avail of our free thirty (30) days trials. This way, you'll know and see if this version suits your business needs.

Also, I've got you this article for reference in case you want to learn how to add a discount to an invoice: Add a Discount to an Invoice or Sales Receipt in QuickBooks Online.

If you have other questions or concerns, don't hesitate to leave a comment below. I'll be around to help.

my cost of good sold is not correct what might be the problem?

Thanks for joining in on the thread, Gisela05.

The data under the Cost of Goods Sold (COGS) account depends on how you set up the items. I'd recommend reviewing the item's affected accounts:

1. Click Sales on the left menu and go to the Products and Services tab.
2. Select the item you want to review and click Edit.
3. Make sure the account selected in the Expense account of the inventory item is Cost of Goods Sold.
4. Click Save and close.

Note that you're likely to create an inventory adjustment or journal entry to correct the data under the Cost of Goods Sold (COGS). You can use these links for reference: 

• Adjust inventory quantity on hand in QuickBooks Online
• Set up and track your inventory in QuickBooks Online
• Add inventory products in QuickBooks Online
• Create a journal entry in QuickBooks Online 

Before doing that, I'd recommend consulting your accountant about this matter, They can give you the exact reason why this is happening and how we can correct it.

Let us know how this goes so we can further assist you in correcting the details.

I encoded a sales receipt but the amount/rate did not reflect in inventory valuation summary detail how to fix it?

Thanks for joining the Community space, @lovely rose.

I'm here to share steps on how to reflect the sales receipt in your Inventory Valuation Detail report.

You'll have to make sure that you choose the correct date range when running the Inventory Valuation Detail report. This way, all the transactions type will show in the report.

Here's how:

1. From the Reports menu, look for Inventory Valuation Detail.
2. Click to open the report. 
3. Select the Report period ▼ drop-down. Choose the correct date range depending on how did you create the sales receipt.
4. Click the small Gear icon and put a check mark in the Transaction Type box.

For additional information on how you can customize a report to focus on the details you want to see and how to view date ranges side-by-side in reports, you can refer to the articles below.

• Customise reports in QuickBooks Online.
• Compare time periods in reports.

Also, I'll be sharing these articles that will guide you in tracking your inventories and how customise your sales forms in QuickBooks:

• Set up and track your inventory in QuickBooks Online
• Customise invoices, estimates, and sales receipts in QuickBooks Online

Please get back to us here if you have other questions about generating reports in QuickBooks. I'm just a post away. Take care!

Hi, I have a doubt about cost of goods. we r service related company. so I entered all sales services invoices in manually. and I entered all cost of services in expenses manually. and tag all invoices also. but in my report not showing cost of sold.

Thanks for joining the thread, YABS PRM LLC.

If you are trying to run the Profit and Loss report, it will show the Sales of Product Income accounts and the Cost of Goods Sold (COGS) accounts that are associated with your inventory-enabled Product/Service items. Then, the COGS accounts are displayed in a separate section of the report between the Income and Expense sections. Also, the difference between your Total Income amount and your Total COGS amount is shown on the Gross Profit line. 

We can review the setup of items since the data under the Cost of Goods Sold (COGS) account depends on it. Just follow the steps below on how to check the item's affected accounts:

1. Click Sales on the left menu and go to the Products and Services tab.
2. Select the item you want to review and click Edit.
3. Make sure the account selected in the Expense account of the inventory item is Cost of Goods Sold.
4. Press Save and close.

You can check out this article for more details about tracking having specific impacts on your financial reports: Impacts of inventory tracking on balance sheet and profit & loss reports. There are also other reports that should be run on an accrual basis to show COGS on the reports. Among these are the following:

• Inventory Valuation Summary
• Sales by Product/Service Summary
• Sales by Product/Service detail
• Purchases by Product/Service detail

You'll want to edit the number of inventory you have available, keep this article for the steps: Adjust inventory quantity on hand in QuickBooks Online.

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you.