Occasionally I have this same problem where when I sell a product, its cogs is not being reflected in the Sales by Item SUmmary Report.
Once I tried deleting the item and re-entering and somehow managed to get it to work but today I am having no luck.
any idea why the COGS would not be showing up? It only shows 0.00. Thanks
There are a couple of things that could have gone wrong: 1) you set up the item as a non-inventory part in which case its not going to have a cost of goods sold value associated with it when you sell it, 2) the inventory item was not purchased properly, or 3) there is a problem with the sales price of the item.
If it is a non-inventory part it is not going to show up because it does not hold the amounts purchased or cost associated with it, the entire purchase value is just going to be clumped in whatever account you put for cost of goods sold. Whenever you sell it, its going to flow into the sales income, bypassing COGS in the traditional sense. DONT SELL NON-INVENTORY PARTS (sorry for the caps :( )
Another thing that is wrong is that the item was not purchased properly on the system or you manually entered a value in the box that says "cost" in the item description. This manually transfers the cost to whatever COGS account you put but it does not effect the actual average cost of the inventory. Its a very dumb stupid flaw in QuickBooks that I really wish they would remove but whatever. There should be nothing in this box. There should be a value associated with the sales price otherwise nothing is going to go to your revenue.
Inventory and COGS is tricky to figure out but those are the two main things that could be wrong. If its a non-inventory item its not going to show up, if you are selling an item that was never purchased it is also not going to have a 0COGS but your income is going to be overstated, and if you do not have a selling price in the box your income is going to be understated and your COGS overstated. Hope this helps and good luck.
