Vendor payments are increasing account balance

I understand the challenges of entering and applying vendor payments in QuickBooks Online (QBO), Bschanel. I'm here to fix this issue. 

Typically, the inventory Cost of Goods Sold (COGS) is impacted when you sell inventory items through invoices or sales receipts. If you're seeing an increase in the account balance, you may have recorded another transaction using COGS as the category.

In this scenario, even if you use a bill, making payments on the bills won't affect the COGS account. This is because it only impacts your bank balance and accounts payable. 

We can review the COGS account and check which transactions have affected its balance. To check, here's how:

1. Go to the Transactions menu and click Chart of Accounts. 

2. Search for the COGS account. 

3. Once done, click Run Report.

I've added this article to learn more about how QuickBooks handles inventory assets, average cost, and Cost of Goods Sold (COGS).   Understand inventory assets and cost of goods sold tracking.

Keep your your posts coming if you need further assistance in manging inventory in QBO. I'm always here to help. Have a great day. 

@Bschanel2019 

"i then ran a report and the cost of goods sold account shows both the bill and the payment but instead of the payment lowering the balance on the cost of goods sold it raises it as if it was another bill. this is over inflating the expense..."

What report?  Can you post a screenshot?  From your description, the bill and the bill payment can't both increase COGS.  The bill increases COGS and A/P.  The bill payment decreases A/P and your bank account.