Cost of Goods Sold (COGS) is the cost of producing the products sold by the company. The amount of COGS is based on how much cost of production such as raw materials, labor wages, distribution cost, etc. Cost of goods sold is also referred to as "Cost of Sales"
On DealPOS, there are 3 calculations for COGS when doing Re-Stock products. These are Manual, Average, and Last Order. You can choose one of these calculations according to your needs. To set up the COGS for your company, you can follow the steps below:
Step 1. Go to Setup Menu and Click More Menu then choose Module
Step 2. Choose the "Buy" tab menu, then you can set COGS Calculation
COGS Calculation
you can see the table below to see how those three kinds of COGS calculations will work according to your needs:
Column | Description |
Manual | Manual Calculation, The products cost will be set according to the buying cost that has already been entered on the first time when you add the products |
Average | Average Calculation, The products cost will be calculated according to these formulas =
|
Last Order | The product's cost will be set according to the Last Buying Cost from the products |
*FIFO | COGS according to first order |
*Important Notes : Currently, DealPOS cannot support the FIFO calculations for COGS anymore.
You might like to read these related articles below:
If you want to make 2 steps for buying process (proposed - approve), you can read the article here: How to Activate Approval when using Buy (2 Steps)
If you want to make a Purchase Return, you can read the article here: Purchase Return
If you want to make Supplier name required when buying, you can read the article here: Supplier Required in Buy Menu