freight out is NOT cost of goods, it is an operating expense

freight in, is part of item cost

COGS is the cost required to get an item ready for sale, your outbound shipping is optional as far as the IRS is concerned.  As is merchant fee’s, out bound packaging, etc

Resolution for 'bound packaging issue: 'Can a add an account for Freight Out in cost of goods sold catagory?' available: Yes.

The bound packaging 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 bound packaging issue yourself by looking for a resolution described in the article. If it is a complex bound packaging issue or you are unable to solve the issue, you may contact us by clicking here or by using other bound packaging support options.

For more information about resolving issues related to bound packaging in Quickbooks/QBO or to get support for the issue 'Can a add an account for Freight Out in cost of goods sold catagory?', click the link below: