QB Issue Resolution:

After some thorough research and testing, I found that you’ll need to create a payroll item, with the correct Cost of Goods Sold (COGS) account to do this. Since you’re unable to assign a COGS account to your items or use an Inventory item when entering timesheets. For additional insight about this, I’m also including these articles:

Resolution for Issue 'Payroll items and Cost of Goods Sold' available: Yes (Solved).
Source: Intuit Community forum.

Payroll items and Cost of Goods Sold: 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.

Support for COGS account
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Error Recovery for COGS account [Canada]
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