Hello there, jackals,
You just have to make sure that the expense account for the employee's payroll item is set to Cost of Goods Sold. Here's how:
- Click Lists on the menu.
- Select Payroll Item List.
- Locate the payroll item, right click to select Edit Payroll Item.
- Click Next until you reach the Expense account section. Click the drop-down and select COGS.
- Click Finish.
- Select when to update the changes made, click OK.
You'll want to create the payroll after this. Once you've paid the employee, the expense flows to COGS. You can run the Profit and Loss report to check if it's now showing.
Stay in touch with me if you have additional questions.
