Here is the steps for entering the COGS. The inventory should calculate based on the selection of accural or cash basis. With your return open, select the Business tab and select I'll choose what I work on.
- On the Let's gather your business info screen, select Start or Update next to Profit or Loss from Business under Business Income and Expenses.
- On the Your Business screen, select Start/Update next to either Inventory/Cost of Goods Sold or Other Common Business Expenses depending on how you chose to report your inventory costs.
- If you don't have inventory but want to report materials and supplies as COGS, select Inventory and then enter 0 for both beginning and ending inventory values.
- If you chose "Other Common Business Expenses," select Supplies on the next screen.
- Follow the onscreen instructions to completion.
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