Where do I add COG's if I only dropship and do not have any inventory

[fendergibson]

Do I still go through the inventory section, even though I don't have any inventory? Or can I just add my COG's as a business expense? Thank you

[RichardK · Accepted solution]

You can report a beginning and ending inventory of zero, and your cost of goods as purchases in the cost of goods sold section, which should result in the proper gross profit amount.