According to the Accounting Coach, the cost of goods sold (COGS) is the cost of the merchandise that was sold to customers. The cost of goods sold is reported on the income statement when the sales revenues of the goods sold are reported.
Most of AroFlo's accounting integration options (with the exception of those listed in our Integration Comparison) support COGS. We can configure your company's integration link to enable you to track stock/item purchases through an asset account, and then track the sale of that item on an invoice through a cost of goods sold account.
How it works
The example below demonstrates the transactions that occur when posting COGS across to your accounting system.
A single item purchase order and invoice. The purchase cost value of the inventory item was $100. It was sold to the end client for $130.
Add COGS to your integration link
If you would like to add COGS for your accounting integration link, please contact our Customer Service Team for assistance.
Final and Sales Invoices
AroFlo will create COGS transactions for any Final invoice. To track COGs for Sales Invoices, ensure the "Track inventory on Sales Invoices" option in SiteAdmin is turned on.
No COGs entries?
If you are integrating invoices and do not see any associated COGs entries you can follow this quick three step checklist. COGS are generated if:
'Supplier Invoice > Inventory Purchased' has an account mapping
The task has any inventory items recorded against it
A final invoice is generated.
COGs are not generated for Part Invoices at this time and only for Final Invoices.
COGs and SOR items
SOR or Schedule of Rate items can be added to any task or invoice and if not added from an SOR list, could affect your COGs transactions. When added correctly from an SOR List, then the item on the task will have a $0 Cost and will not affect the overall COGs amount. However if they are not added from an SOR List then they will transfer to the task with any cost value set on the SOR item in your inventory and therefore will affect