We are tracking the inventory. While we issue invoice only the income appears on the PLNO cost of goods sold appear on Profit and LossWhat could be wrong?

Hi Zain, did you add an initial cost when setting up the product?

If your purchase cost is left blank, QuickBooks Online (QBO) won't have a value to move to Cost of Goods Sold (COGS) when you make a sale. To fix this, head to the Gear icon, select Products and Services, and hit Edit on the item. Ensure that the Purchase cost field is filled in with an amount before clicking the Save button.

QuickBooks uses a First-In, First-Out (FIFO) method, locking in costs at the moment a transaction occurs. As a result, updating the cost now will not automatically adjust your previous sales. To have past transactions reflect the new cost, you need to delete and recreate the invoices.

We also need to verify one more thing. Even if the cost appears to be correct, QBO requires the Quantity on Hand to create the COGS entry. If your inventory level is at zero, you will need to record a purchase, such as a bill or a cheque, to provide the system with a cost basis to work with.

For additional questions or concerns, feel free to reply to this thread.