Hi there, @Smedley.
I can share with you some insights about how non-inventory items are reflected in your report.
Basically, COGS is only affected by inventory type of items. It will only calculate under the accrual basis of your reports once the item is sold. For other types (non-inventory, service), the transaction will show up as the whole expense amount. At this time, you may update your item to inventory to track your report accordingly.
Here's how:
- Go to the Gear icon, then select Products and Services.
- Locate the item from the list, then click on Edit under Action.
- Select Change type beside Non-inventory.
- Choose Inventory.
- Review the items (income and expense account).
- Hit Save and close.
If necessary, delete and recreate the past transactions for an accurate result.
Here's an article you can read more about the difference between Cash and Accrual methods for QuickBooks Online.
Besides, you can open as your guide with managing your reports.
Please let me know how else I can help you with your reports or products/services. I'm always here to help. Keep safe!
