QB Issue Resolution:

Not only is the part COGS but so is the cost of payroll directly attributed to this particular service

“The cost of goods sold (COGS), also referred to as the cost of sales or cost of services, is how much it costs to produce your products or services. COGS include direct material and direct labor expenses that go into the production of each good or service that is sold.”


But your net result will be the same recording the immediately resold part as parts/supplies since it was not in inventory and does not remain in inventory resulting in any year end adjustment of inventory value. It can be cumbersome to allocate  labor across each job but any work your employees do that is not “billable” is not COGS (plowing parking lot, counting inventory, etc)

Resolution for Issue 'COGS or Expense?' available: Yes (Solved).
Source: Intuit Community forum.

COGS or Expense?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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