Why do I have an amount in COGS in my report by product/service summary but I do not have any COGS entered in the specific item.

Hi user13231, 

QuickBooks Online contains numerous reports that allow you to examine the health and performance of your business. The cost of goods sold and inventory are intertwined within the background of the system. I can help shed some light on this for you. 

In QuickBooks Online, all inventory items require an income account and an expense account. When you first set up an inventory item, the system will automatically create an Inventory asset account and a Cost of goods sold account, as these are what the system uses to keep track of the inventory as it moves in and out of your business. When an inventory item is purchased from your supplier, it goes to the inventory asset account. Once that item has been sold to your customer, the expense related to purchasing the item is posted to the COGS account and the income is posted to your selected income account. You can create and use your own COGS accounts aside from the default one if you'd like. You can find further explanation of how the cost of goods and inventory relate to each other in the following Community articles: 

• Understand inventory assets and cost of goods sold tracking

• What is FIFO and how is it used for inventory cost accounting?

If you're still unsure about how this works, I recommend contacting your accountant as they may be able to explain it in a different way. You can invite your accountant to view your QuickBooks Online company through the My Accountant screen, or use the Find a pro to help option to search for a QuickBooks certified Pro Advisor near you. 

If you have any other questions please don't hesitate to reach out!