The Cost of Goods Sold account is only for your inventory. You will still use the advertising, office expenses, assets, supplies, and taxes & licenses accounts to enter those expenses. The only costs that go in the COGS account are costs for items that you are going to resell. Any costs entered under COGS do not get entered anywhere else on your tax return. A cost is either an inventory (COGS) expense or a general business expense (all other expense accounts).
Cost of Goods Sold = Beginning of Year Inventory + Purchase Costs During the Year - End of Year Inventory.
It looks like your attachment was removed, probably because it contains identifying information and this is a public forum. But within the COGS account, you may use the 'Cost of Purchases', 'Materials and Supplies', 'Other Costs to Prepare', or any combination that works for you. It all gets added together to make up the Purchase Costs During the Year amount in the formula above. The result is the amount that TurboTax will transfer to your Schedule C for COGS.
The important thing is to not enter any expense twice. Only costs directly related to the goods you sell should be recorded under the Cost of Goods Sold section. Everything else goes outside of Inventory/Cost of Goods Sold. So you may have 'supplies' that are general business supplies and others that are COGS. Include them in COGS only if they become part of your final product. If they are not part of your final product, leave them out of COGS and use the general business categories, such as ''Other Miscellaneous Expenses'' or ''Supplies".
