I record labour hours using the Activity Time for each of my projects. The costs for these is showing under expenses instead of Cost of Goods Sold. How do I fix it?

You can edit the income account of the item to ensure it appears under Cost of Goods Sold in the Project Profitability Report, Sue.

Here's how:

1. Go to the Gear icon, then Product and services.
2. Find the item.
3. Under the Action column, select Edit
4. In the Income account dropdown, choose Cost of sales.
5. Tick the box beside Also update this account in historical transactions.
6. Hit Save and close.
   

To help you save your current report settings, I recommend checking this article: Customise reports in QuickBooks Online.

If you require further assistance in managing projects, feel free to leave a comment below. We're always here 24/7 to support you.