IS shows a VERY large COGS amount, when I click to see the ledger detail there are VERY large amounts. Ex: $10,300, but if I click to see the entry it is actually $60?

Hi jodibaehl,

I know being able to track your inventory and keeping accurate records are imperative for running a successful business. QuickBooks Online has a comprehensive inventory module that can keep your business on track. Knowing how all of the features work can help explain where the amounts come from. I can help explain this.

Setting up and tracking your inventory in QuickBooks Online is an important part of inventory management. This article goes into more detail about what I'm going through now. When you initially set up inventory QuickBooks will automatically create two accounts; Inventory Asset, and Cost of Goods Sold (COGS). If these accounts aren't the ones you wish to use you can create your own. 

When you purchase an inventory item, the QuickBooks posting transaction will put a debit in the Inventory Asset account and credit the payment account, your credit card, or bank account. It doesn't enter an expense at this time, the expense is recorded when the sale is recorded. When the income is recorded this is when the COGS account will be debited.

The Transaction Journal Report can be used to troubleshoot totals that don't seem right. The amounts included for the sales and the COGS will be recorded in the entry.

When you Add inventory products in QuickBooks Online you'll need to select income and expense accounts.  The expense account is necessary to track your COGS expense. When you're creating these products, you'll enter an amount as the cost of the item. It's possible that in this area a decimal may have inadvertently been recorded in the wrong place value. 

By reviewing your product cost entries and the transaction journal report for the sale and cost of goods entry you should get to the bottom of the discrepancy.

If you've done this and still have questions, reach back out. I'm here to help.