Cost of merchandise not showing on imcome tax report

Good to see you here in the Community space, @monty-hannah002-. Let me provide some insights about running the report you need.

First off, the Profit and Loss reports detail your income and expenses. The posting of amounts depends on the accounts or categories used on the item lists or transactions. That said, you can review the transactions and make sure the items have the correct Income Account (Revenue) and Cost of Goods Sold Account (Expense). To do this, go to the Sales menu and select Product and Services to verify.

In addition, the cost of sales measures and accumulates the total costs for a product with inventory type. In this case, you'll have to ensure each product type of the item, so the cost of sales will show up on your report.

To learn how tracking inventory affects your reports, I recommend reading this article: Impacts of inventory tracking on Balance Sheet and Profit & Loss reports.

You can also read these articles for more information about inventory tracking in QuickBooks Online:

• What is FIFO and how is it used for inventory cost accounting?
• Can I track inventory manually in QuickBooks Online?

Don't hesitate to let me know if you have any questions or concerns. I'm always here for you. Take care and have a good one!