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.

You can see the table below to see how those three kinds of COGS calculations will work according to your needs:

Notes :

Currently, DealPOS cannot support the FIFO calculations for COGS anymore.

The example below will tell you how those 3 types of COGS will work:

Set the COGS to Manual as shown in the first step above.

For example, we try to set the product "T-Shirt" Buying Cost to Rp. 40,000

Buy Product from Buy Menu with a different Buying Cost from the Buying cost product.

Then we bought the product for 1 qty, but with different Buying Costs, the new Buying cost is Rp. 55,000.

The buying cost from that product will not be changed and will always be the same as the first time we input the Buying Cost of the product when we create the product

Set the COGS to Average as shown in the first step above.

For example, we try to set the product "T-Shirt" Buying Cost to Rp. 55,000

Buy the product in the Buy menu with a different Buying Cost from the Buying cost product.

Then we bought the product for 1 qty, but with a different Buying Cost, the new Buying cost is Rp. 65,000.

Buy the product for the 2nd time in the Buy menu with a different Buying Cost from the Buying Cost product.

After the first purchase, then we bought the product for 1 qty again, but with a different Buying Cost than before, the new Buying cost is Rp. 50,000

The buying cost from that product will be changed according to the average Buying cost from those 2 Purchase transactions with different buying costs. As you can see from the image above, the product's cost is changed to Rp. 56,000 after we've made 2 Purchases with different Costs. The first purchase was Rp. 65,000 and the 2nd purchase was Rp50,000 Then, the calculation will be like this:

The first transaction counted as this:

And the second transaction counted as this:

Then the final result from that product's Buying cost will be set to Rp. 56,000

Set the COGS to the Last Order as shown in the first step above.

For example, we try to set the product "T-Shirt" Buying Cost to Rp. 56,000

Buy the product in the Buy menu with a different Buying Cost from the Buying Cost product.

Then we bought the product for 1 qty, but with a different Buying Cost, the new Buying cost is Rp. 60,000.

The buying cost from that product will be changed according to the Last Buying Cost that we set before when making a Purchase Transaction with a different cost.