You need to edit your business entries and on the screen that says Your (name of business) Business, choose the Inventory/Cost of good sold option. You need to say that you have inventory even if you don't, then you will see the option to enter your materials and supplies as "Cost of Purchases". For the beginning and ending inventory, just enter $0 if you don't have any. Your materials and supplies will then show in the cost of goods sold section.
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