Hi QBO!I store my inventory at a warehouse. At the end of each month, I expect to get a storage cost bill, $200. Is this COGS? How do I record this bill as COGS? Thanks

Let me record the cost of goods sold in QuickBooks Online (QBO), accounting-kahun.

The cost of goods sold (COGS) refers to the cost of producing an item or service sold by a company. To know the cost bill of $200.00, will need to review how you set up COGS in QBO. If you purchase inventory using bills, just use the asset account you created to track its value in the Account field. This "transfers" the money into the asset account, increasing the value of your inventory. Here's how: 

1. Click the + New Plus icon. 
2. Select Journal entry.
3. On one line, enter a Debit to your cost of goods sold and account for the original cost of the product you sold. Do not use the sales price.
4. On the next line, enter a Credit for the inventory asset account for the original cost of the product you sold.
5. Press Save.

This Journal Entry decreases the value of your inventory (indicating you have less) and increases your Cost of sales. To track properly the Cost of Good Sold, let me guide you through the steps on how to set this up:

First, create an account to track your inventory value.

1. Go to the Gear icon at the top, then Chart of Accounts.
2. Select New.
3. Choose Current assets from the Account Type drop-down.
4. Select Other current assets from the Detail Type drop-down.
5. Click Save and Close.

Then, create an account to track your cost of goods sold. I'll show you how below:

1. Go to the Gear icon at the top, then Chart of Accounts.
2. Select + New.
3. Choose Cost of Goods Sold from the Account Type drop-down.
4. Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. If you're not sure, use Other Costs of Service - COS.
5. Click Save and Close.

To learn more about the process mentioned by visiting this article: Can I track inventory manually in QuickBooks Online? Also, you are correct when you say COGS automatically calculates once you issue an invoice or sales memo. Learn more about how QBO calculates COGS through this article: Cost of goods sold: How to calculate and record COGS.

If you're trying to set up a COGS account for an inventory item, then you can add it under the Expense account. Just create an item by following the steps below:

1. Go to Sales and choose Products and Services.
2. Click New.
3. Select your preferred Product/Service information.
4. Fill in the necessary information and make sure to choose COGS under the Expense account.
   
5. Click Save and close.

To give more information about managing inventory and what reports are available in QuickBooks Online, check out the following articles:

• Inventory management.
• Use reports to see your sales and inventory status.
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I want to hear any updates after performing the steps. Also if you have additional questions about running a report for COGS, please add a reply below. I'd be happy to assist you further. Take care always.