Can you help me figure out why QuickBooks Online isn't calculating the cost of goods sold after February2026?

Hi there, Abdikadir. When QuickBooks stops calculating Cost of Goods Sold (COGS), the most common causes are items sold with a $0 cost or issues in the initial item setup.

QuickBooks Online (QBO) follows the First In, First Out (FIFO) method. The system cannot calculate COGS if an item has no recorded cost at the exact time of the transaction. Moreover, editing the item cost later does not automatically update those past transactions.

To resolve this, first verify that each product or service has an assigned cost and is correctly mapped to a COGS expense account. Additionally, since inventory-related COGS follows accrual basis accounting, you may need to switch your Profit and Loss report from Cash to Accrual accounting method to see the values appear.

For better long-term accuracy, you can set up and turn on inventory tracking in QBO. This feature will help you monitor what's on hand, receive low-stock alerts, and gain insights into your buying and selling patterns.

Should you have any other concerns, feel free to reply to this thread.