How to set up Quantity-based COGS or Bundled COGS
If you're looking for how to set up COGS in TrueProfit, check out the Setting up Cost of Goods (COGS) for all products article.
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS.
Step 1: Click Add quantity break to add a new row for unit count
Step 2: In the first row, enter the maximum number of units for the first COGS value. The next row will be filled automatically to ensure your setting is correct.
Step 3: Enter the cost per unit value for each row.
Please note that the cost per unit value is applied to each unit sold in an order. For example, the product costs given by your supplier are:
$9 if a customer purchases 1 unit
$15 if a customer purchases 2 units
$20 if a customer purchases 3 units
$25 if a customer purchases 4 units or more
The app doesn't calculate using the total price directly. Instead, you need to find the Cost of Goods Sold (COGS) by subtracting the COGS of a lower level from the higher level's total cost.
Here's how to deduct the COGS value in each level to have the correct Cost per unit with the given costs above:
For orders with 2 units: Total COGS = (1*9) + (1*6) = $15
For orders with 4 units: Total COGS = (1*9) + (1*6) + (1*5) + (1*5) = $25
For orders with 5 units: Total COGS = (1*9) + (1*6) + (1*5) + (2*5) = $30
That means your input in each row will be as follows:
All the edits you made to a product/variant will be saved and applied to future orders only. If you want to apply new costs to orders in the past as well, you will have to recalculate all past orders in TrueProfit.
Recalculate past orders means applying new changes to all orders that match for all products. If you want to manage different product costs in the past, add COGS periods like the instructions above.
Step 1: Select the products or variants that you want to recalculate using the checkboxes at the left of the table
Step 2: When a product or variant is selected, you can see the Re-calculate product past orders button shows up at the top of the table
Step 3: Click Re-calculate product past orders to start applying and recalculate COGS for all orders in the past of the selected products/variants
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS.
How to apply quantity break COGS for a product/variant
Step 1: Click Add quantity break to add a new row for unit count
Step 2: In the first row, enter the maximum number of units for the first COGS value. The next row will be filled automatically to ensure your setting is correct.
Step 3: Enter the cost per unit value for each row.
Please note that the cost per unit value is applied to each unit sold in an order. For example, the product costs given by your supplier are:
$9 if a customer purchases 1 unit
$15 if a customer purchases 2 units
$20 if a customer purchases 3 units
$25 if a customer purchases 4 units or more
The app doesn't calculate using the total price directly. Instead, you need to find the Cost of Goods Sold (COGS) by subtracting the COGS of a lower level from the higher level's total cost.
Here's how to deduct the COGS value in each level to have the correct Cost per unit with the given costs above:
For orders with 2 units: Total COGS = (1*9) + (1*6) = $15
For orders with 4 units: Total COGS = (1*9) + (1*6) + (1*5) + (1*5) = $25
For orders with 5 units: Total COGS = (1*9) + (1*6) + (1*5) + (2*5) = $30
That means your input in each row will be as follows:
Applying your changes in product costs to all orders in the past
All the edits you made to a product/variant will be saved and applied to future orders only. If you want to apply new costs to orders in the past as well, you will have to recalculate all past orders in TrueProfit.
Recalculate past orders means applying new changes to all orders that match for all products. If you want to manage different product costs in the past, add COGS periods like the instructions above.
How to recalculate past orders for one or multiple products
Step 1: Select the products or variants that you want to recalculate using the checkboxes at the left of the table
Step 2: When a product or variant is selected, you can see the Re-calculate product past orders button shows up at the top of the table
Step 3: Click Re-calculate product past orders to start applying and recalculate COGS for all orders in the past of the selected products/variants
Updated on: 23/09/2024
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