COGS (Cost of Goods Sold)
COGS (cost of goods sold) is the total cost of the inventory you've sold during a period. In Peasy, COGS is calculated automatically based on your receiving costs and the FIFO method.
How It Works in Peasy
- Peasy calculates COGS using FIFO — the oldest inventory costs are expensed first
- When you fulfill a sales order, the cost of those units is recorded as COGS
- Item cost is established when you receive a purchase order (the unit cost on the PO)
- COGS appears in inventory reports and is synced to QuickBooks when connected
- Production costs (from work orders) also factor into COGS for manufactured items
Why It Matters
Accurate COGS is essential for understanding your true profit margins. If you don't know what your sold goods actually cost, your revenue numbers are meaningless. Peasy automates this so you don't have to track costs in spreadsheets.