Deducted Closing Balance of Goods

When you sell an item from your stock, Cost of Goods Sold (COGS) increases by the amount you paid for that item when you purchased it, @randhir Jha. Let me provide further details about this.

The Cost of Goods Sold (COGS) account represents the entire expense of making your goods. You're able to deduct its balance once you've created a sales transaction. Then, you can see the difference between your income from the sale and the increase in COGS in the Gross Profit section in your Profit & Loss report.

You can learn more about how stock tracking specifically impacts your Profit & Loss reports by checking your this article: Impacts of stock tracking on balance sheet and profit & loss reports. It also contains information about other reports that should be run on an accrual basis.

Additionally, you're able to customise your financial reports to focus on the details that matter the most. For the detailed steps, kindly refer to this article: Customise reports in QuickBooks Online. It also has instructions about sharing custom reports via email.

Please let me know if you have other concerns. I'm just around to help. Take care always.