How do I make sure my cost of goods sold ("COGS") is accurately calculated in Retail POS?
Ordering units through a stock order is the best way to ensure that the correct COGS is recorded in Retail POS.
Products created without a supply price will display $0 for COGS. To remedy this, you need to submit a stock order. If you add these units via a CSV file or the edit product page they won't generate the correct COGS even if the supply price is changed.
Changing the supply price on the edit product page also won't change the supply price for units already in stock, or for units you add via a CSV file or the edit product page.
COGS may also differ from the current supply price of a product. This is because the recorded cost can be different.
When inventory is received, Retail POS either uses the supply price of the product or the cost listed on the stock order. However, no changes are made to the cost associated with the units that you previously received into stock for that product. This means that if you have any existing stock with a different or incorrect supply price, your COGS will calculate incorrectly.
Fixing incorrect COGS using a stock order
- Navigate to Catalog > Products. Use the filters to locate the product(s) you wish to adjust. Click Export list... and select CSV format.
- Navigate to Inventory > Inventory count and click Add inventory count. Name the inventory count as "COGS correction". Select an outlet, then click Partial count.
- Scroll down to Filter products and add the products you want to adjust. Click Start count.
- Do not count any products, click Review instead. Then, click Complete. This will revert your inventory to zero for the selected products. Click Submit.
- Now, navigate to Inventory > Stock control > Order stock and create a purchase order for all the products in your inventory count.
- Receive the stock order under Inventory > Stock control > Receive stock. Once you receive the order, your inventory will be added back to Retail POS and the COGS will reset to match the supply price of the product.