This is where I'm getting confused, I didn't enter the raw material into inventory. I simply expensed to Supplies & Materials - COGS when I entered the transaction into QBO. I only added the final product into the inventory. The expense account used for inventory items is COGS. So am I doubling the expenses in COGS? I guess my biggest problem here is that I don't understand how COGS and Inventory works. Nor do I understand how this effects my financials. If you could explain it in Layman's terms that would be great!