Product Cost | How to add Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) or Product Cost is essentially one big part of your total costs. Simply put, COGS of one product is how much it costs you, as opposed to how much you charge customers (Sales price).
With TrueProfit, you can manage your COGS easily.
Follow this video tutorial or read below for instructions.
By default, TrueProfit syncs Cost per item from Shopify upon installing.
Additionally, there are 3 other ways to import COGS into TrueProfit: Estimating COGS, entering manually or uploading a .csv file.
Priority of the importing method is as follow:
Estimated COGS < Cost per item (from Shopify) < CSV file import AND manually imported COGS
For a store with many products, it can take a lot of time to enter all COGS. Luckily, you can roughly estimate COGS based on Sales price.
Go to Calculation > Product Cost > Estimated COGS Rate. You'll find a slider representing COGS as the percentage of Sales price. For example, if you define the percentage as 20%, sales price is $100, then your COGS is $20.
What if there are some products that don't follow this rule? You can then use the second method to specifically adjust them.
Old school but accurate. You can add COGS for each product (or variant). For winning products, we strongly advise that you specifically enter COGS to get best results.
Go to Calculation > Product Cost > Product List. You'll see a list of your products in store. Simply enter the product costs in the AVR COGS column. This value will be applied to all variants of the same product.
If you need to create a new zone for particular products, choose Add zone -> Info tab -> fill out Zone name then select Countries that you need to add in this zone. You can filter the country name to add in. Click Next to adding products.
In “add products” tab, select or search product that you want to add to this zone, then click “save” to create a new zone.
If a product has multiple variants with different prices, click the arrow next to a product's name to display all variants. There you can adjust COGS for each variant.
Manually entered COGS will be prioritized over estimated COGS. This means any changes with the estimation slider will not override the values you already entered.
This method comes in handy when you have hundreds of product and need a way to copy/paste COGS quickly.
To do this, first you need a template containing all products in your store. In Calculation > Product Cost, find the Export COGS button. Click to download the .csv file.
Make changes to the COGS column in the file, then upload it back using the Import COGS button.
Sometimes it's crucial for one product to have different COGS over different date ranges. Your product costs might have increased or decreased due to negotiation or supplier's promotion, and you should be able to track all.
With TrueProfit, it's possible.
Visit Calculation > Product Cost. In Product list, click on the > icon right in front of the product name. A list of variants will appear.
Click on View history, you'll see all historical COGS of that variant. Click on Add COGS, enter a cost value and choose a Start date to add new COGS.
Note: If there is an overlap in time range, newly added time ranges will override previously added ones.
You can change COGS in 2 ways, depending on your need:
Change COGS from the present to future: Simply make changes in the COGS field and do nothing else, as usual.
Change COGS from the past to future (update COGS in the past): Make changes in the COGS field, then click on "Re-calculate Product Profit".
If you need to update COGS to all orders in the past, click on "Re-calculate Profit" at the bottom of the page. This will apply the new COGS to all orders and refresh profit calculation.
Please refer to this link for more information to set the quantity break for COGS: click HERE
With TrueProfit, you can manage your COGS easily.
Follow this video tutorial or read below for instructions.
By default, TrueProfit syncs Cost per item from Shopify upon installing.
Additionally, there are 3 other ways to import COGS into TrueProfit: Estimating COGS, entering manually or uploading a .csv file.
Priority of the importing method is as follow:
Estimated COGS < Cost per item (from Shopify) < CSV file import AND manually imported COGS
1. Estimate COGS
For a store with many products, it can take a lot of time to enter all COGS. Luckily, you can roughly estimate COGS based on Sales price.
Go to Calculation > Product Cost > Estimated COGS Rate. You'll find a slider representing COGS as the percentage of Sales price. For example, if you define the percentage as 20%, sales price is $100, then your COGS is $20.
What if there are some products that don't follow this rule? You can then use the second method to specifically adjust them.
2. Enter COGS manually
Old school but accurate. You can add COGS for each product (or variant). For winning products, we strongly advise that you specifically enter COGS to get best results.
Go to Calculation > Product Cost > Product List. You'll see a list of your products in store. Simply enter the product costs in the AVR COGS column. This value will be applied to all variants of the same product.
If you need to create a new zone for particular products, choose Add zone -> Info tab -> fill out Zone name then select Countries that you need to add in this zone. You can filter the country name to add in. Click Next to adding products.
In “add products” tab, select or search product that you want to add to this zone, then click “save” to create a new zone.
If a product has multiple variants with different prices, click the arrow next to a product's name to display all variants. There you can adjust COGS for each variant.
Manually entered COGS will be prioritized over estimated COGS. This means any changes with the estimation slider will not override the values you already entered.
3. Upload a .csv file
This method comes in handy when you have hundreds of product and need a way to copy/paste COGS quickly.
To do this, first you need a template containing all products in your store. In Calculation > Product Cost, find the Export COGS button. Click to download the .csv file.
Make changes to the COGS column in the file, then upload it back using the Import COGS button.
Historical COGS
Sometimes it's crucial for one product to have different COGS over different date ranges. Your product costs might have increased or decreased due to negotiation or supplier's promotion, and you should be able to track all.
With TrueProfit, it's possible.
Visit Calculation > Product Cost. In Product list, click on the > icon right in front of the product name. A list of variants will appear.
Click on View history, you'll see all historical COGS of that variant. Click on Add COGS, enter a cost value and choose a Start date to add new COGS.
Note: If there is an overlap in time range, newly added time ranges will override previously added ones.
Update COGS to orders in the past
You can change COGS in 2 ways, depending on your need:
Change COGS from the present to future: Simply make changes in the COGS field and do nothing else, as usual.
Change COGS from the past to future (update COGS in the past): Make changes in the COGS field, then click on "Re-calculate Product Profit".
If you need to update COGS to all orders in the past, click on "Re-calculate Profit" at the bottom of the page. This will apply the new COGS to all orders and refresh profit calculation.
Quantity break for COGS
Please refer to this link for more information to set the quantity break for COGS: click HERE
Updated on: 24/03/2023
Thank you!