We have been entering all supplier invoices directly to COGS for a year eliminating the need to do a separate journal transaction for every invoice. Our investor has asked us to switch to inventory tracking and COGS tracking. I set up products + services in QBO and started entering all my items with the expense account inventory asset. I do the entire month of February adjusting invoices to ensure everything matches and then I pulled my balance sheet and P+L. I was extremely dissatisfied to see that all purchases ended up in inventory and COGS was reporting nothing. 

Someone please help me track inventory/cogs in QBO by using the products and services tab. I cant go on like this.. too many invoices/too little time. 

Thank you