If my Bill for items not yet is showing in my COGS in Cash P&L is that corret?

Hi there. Let me assist you with your Cost of goods sold transaction in QuickBooks Online (QBO).

To answer your question, it is normal for the bill item to appear when you run a Profit and Loss report based on the specific account associated with the item. With your COGS, note that it encompasses all the costs and expenses directly tied to the production of goods. It includes expenses such as raw materials, direct labor, and manufacturing overhead. It is important to note that COGS excludes indirect costs like administrative expenses, marketing expenses, and distribution costs. A company can calculate its gross margin by subtracting the COGS from the total revenue. Understand that high COGS can lead to lower margins, which can impact the overall profitability of the business. Various costs are associated with the production of goods, and any changes in these costs can directly affect the COGS. It's essential to be mindful that any increases in production costs can lead to a corresponding increase in the COGS, potentially impacting the company's overall financial performance.

On the other hand, you may also see this link as a reference to understand inventory tracking impacts in balance sheet and profit and loss in QBO: Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Online.

If you have further questions about our products, specifically when tracking your profit and loss in QBO, revisit us anytime. I'll be right here to discuss additional insights with you.