Confusion with Schedule C and shipping charges

This is crazy but here goes. I have very few sales that amount to less than $4000. I drop ship and pay shipping charges to my supplier - I do not charge my customers shipping. 

I have entered all my figures and the shipping cost of $512 under Business Expenses Not Yet Reported  but when all is said and done, TT says I have exactly $512 more in net income. Should I be adding that $512 to the cost of goods sold? 

Am totally confused -