This inventory tracking/COGS features are available in QuickBooks Online PLUS. It is not available in QuickBooks Online Essentials or Simple Start.
- Make sure Inventory setup is enabled under preferences settings.
- From the company gear (from upper right corner), select company settings
- Select Products and Services
- Check Quantity/Price Rate and Quantity on Hand (Inventory Tracking)
- See attached screenshot photo 1 for reference
- Product and Service Information form (see attached screenshot photo 2 for reference)
- Checkbox – I track quantity on hand for the product
- Enter initial quantity on hand and as of date
- Select Income Account
- Select Expense Account = COGS
- This YouTube tutorial video may also be very helpful.
QuickBooks Online Plus: how to add beginning inventory quantity on hand?