We need to ensure your QuickBooks Online Company file is set up for Manufacturing Industry to manage Cost of Sales, MWALIMU.
Here's how:
- Go to the Gear icon and select Account and settings.
- Click on the pencil icon in the Company type.
- In the Industry dropdown, choose Manufacturing as the industry type.
Once done, here's how to set up products made from raw materials:
- Navigate to the Sales menu and open the Products and Services tab.
- Click New, and choose your desired product.
- Include the raw materials required for the finished product.
- When finished, click Save and Close.
The system automatically sets the Income Account to Cost of Sales by default. However, you can customize this by creating and assigning a different income account to match your preferences.
To give more information about managing inventory and what reports are available in QuickBooks Online, check out the following articles:
For more clarification, please reply to the forum.
