Articles on: Cost Settings

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.

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

If you made edits to the product cost level, COGS, or Handling Fees for a product, the app will save your setting to apply to future orders only. If you want to apply new costs to orders in the past as well, you'll need to Recalculate past orders.

Updated on: 10/06/2024

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