Why does my cost of goods sold say 0?

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Introduction

QuickBooks will debit COGS and credit inventory asset for each order QB creates. There are a few instances where the journal entry will fail. They include non-inventory parts, no stock, and no purchase price.

What does the $0 entry look like?

Here is an example.

What are the points of failure?

The product's type of service or non-inventory

In QuickBooks, go to your product list. Double click the product. On the top, click change type. Select inventory. Add a purchase price, expense, and item asset account.

The product has no purchase cost

If the purchase cost is $0, then no journal entry will occur. Follow these steps to resolve:

  1. In QuickBooks, go to the product list.
  2. Double click a product.
  3. On the right, scroll down to purchase cost.
  4. Enter a positive number.
  5. Click save.
  6. Go back to the profit and loss report.
  7. Verify that the COGS account was debited.

The product is out of stock

In QuickBooks, increase the quantity on hand to a positive number:

  1. In QuickBooks, go to the product list.
  2. Double click a product.
  3. On the right, click adjust quantity.
  4. Enter a new quantity.
  5. Go back to the profit and loss report.
  6. Verify that the COGS account was debited.

The product is in stock, however, the value of the stock says 0

Here are the steps:

  1. In QuickBooks, go to the product list.
  2. Double click a product.
  3. On the right, click adjust the quantity.
  4. Ensure the inventory has a cost.
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