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lantz1
January 23, 2025
Question

Cost of goods sold not showing up within a Project

  • January 23, 2025
  • 1 reply
  • 0 views

We just started using the "Projects" feature within QB to track profitability project to project.  It's been a bit of a learning curve, but have most everything figured out.  We don't use QB to track inventory as most of our projects are one off, with product being ordered on a project by project basis one at a time.  

 

The current issue is that some products aren't showing a value under cost of goods sold within the project report.  These items are listed under inventory asset account.  Income Account is set to "Sale of Product Income" and Expense Account is set to "Cost of Goods Sold".  

 

Some items will show a value within the profitability reports, and some will not, and I can't figure out why it calculates properly sometimes and not others.

 

Thanks in advance.

 

 

1 reply

A
AdonL
January 23, 2025

Thanks for reaching out about your experience with the projects feature in QuickBooks Online (QBO). We appreciate you sharing the details of your current setup. I got some details about how the Cost of Goods Sold (COGS) correctly calculates and sometimes not.

 

To begin, COGS operates efficiently on expense-type transactions such as bills and expenses. If you directly add an item with COGS to an invoice without a preceding expense transaction, its value will not appear in project profitability reports.

 

For this feature to correctly show in project reports, the item should first be associated with an expense transaction (like a bill) and then linked to a sales transaction (like an invoice). For example: Record the expense (e.g., bill) first, then create the invoice. It allows the program to track and report the COGS properly.

 

Following this process ensures that QuickBooks can accurately match the cost of the item to its sale, which is crucial for correct COGS reporting in project profitability calculations.

 

Additionally, I'll add these articles to help you utilize the Project feature effectively in QBO:

 

 

Furthermore, you may consider reviewing this article If you want to learn more information on how to track your inventory in QuickBooks Online: Set up and track your inventory in QBO.

 

We've got your back, lantz1. Let us know in the comments if you have further concerns about inventory tracking in the program. We're always around to help. We wish you continued success. 

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