Thanks for getting back here in the Community, cmcclung. Let me share details about showing job-related payroll expenses in Cost of Goods Sold (COGS) instead of Payroll Expenses on your Profit and Loss report.

It is crucial to understand that billing a client for billable items will not automatically transfer the costs from Payroll Expense to COGS. The expenses remain in the Payroll Expense account unless the payroll item's associated account is specifically modified to COGS. This action guarantees the items are recorded under Cost of Goods Sold on QuickBooks Enterprise's Profit and Loss report.

Here's how to change the tracking expense account of your item:

1. Go to Lists, then click Payroll Item List.
   
   
2. Choose an item and double-click to edit.
   
   
3. Click Next.
   
   
4. Hit the dropdown arrow and look for the Cost of Goods sold account
   
   
5. Once done, click Finish.
   
   

That will cause your labor costs to be categorized under COGS when running a Profit and Loss report.

Moreover, feel free to visit these articles as your reference for customizing different types of reports in QBDT:

• Customize payroll and employee reports.
• Customize customer, job, and sales reports in QuickBooks Desktop.
• Customize vendor reports.
• Customize item reports.

Shoot me a reply if you need further assistance with tracking your payroll items and running payroll reports in QuickBooks Enterprise. I'll be here to lend a hand.