Accounting for Changing Cost of Goods for Profit Calculation

Costs of goods change over time and for accurate profit calculations, it’s crucial to module them correctly. 

In sellerboard, you can do that in different ways, by entering the costs by period, by batch or as a single value. 

The cost of goods varies from batch to batch. For accurate profit calculating, you can enter the cost of each new batch in your sellerboard account and calculate the exact weighted average cost of goods.

To enter the cost price of a new batch, go to the “Products” page and choose the “By period/batch/marketplace” option in the “Type” column, then click on the number in the “Cost” column. 

In the pop-up that opens, enter the data on the actual cost of goods. Then click on the “Add new period” button and enter the data on the cost price of the new batch of goods. 

To calculate the weighted average cost, tick “Account for remainder of stock from previous batch”.

Another way is to enter the cost of goods by period, by simply setting a new cost price from a specified date when the new cost starts. 

Watch a detailed video on how to enter the cost of goods (COGS) by period, and batch in sellerboard:

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