QB Issue Resolution:

Posting the bulk fabric purchase to COGS is fine

 

make your item and create a service item for it, link it to income or product sales income, or … what you name the income account is immaterial just insure it is an income type

 

By posting to cogs when you purchase you are not using inventory items, and for your business model that is the best way to do it. An assembly item would not work for this either, assembly items are finite, and in sewing there is always drops, excess, miscuts, etc

Resolution for Issue 'Inventory' available: Yes (Solved).
Source: Intuit Community forum.

Inventory: 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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