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. The cost of goods sold is also referred to as the "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

Setting Up Product's COGS Calculation - Setup Module

Step 2. Choose the "Buy" tab menu, then you can set COGS Calculation

Setting Up Product's COGS Calculation - Buy Configuration

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 Price * Old qty + New Price * New qty ) / (Old qty + New qty)}

Last Order

The product's cost will be set according to the Last Buying Cost from the products

*FIFO

COGS according to the first order

*Important Notes: Currently, DealPOS cannot support the FIFO calculations for COGS anymore.

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