Because when I make a sale I get the cost of the merchandise in the expense panel

Hi @hello117,

You'll want to check the account used from the product or service item's settings. Let me guide you how.

1. Go to Gear, then Products and services.
2. Edit the item in question. Then, correct the Expense account drop-down.
3. Click Save and close.

I've got these awesome articles for additional reference. Feel free to check on the links below.

• Set up and track your inventory in QuickBooks Online.

• Can I track inventory manually in QuickBooks Online?

• Targets vs. Sources overview.

That'll do it. Please let me know if you have other questions or concerns. I'll be around for you. Thanks for dropping by and have a great day.