Check COGS journals (perpetual method)
Overview
Find out how to check your the cost of goods sold (COGS) journals (or transactions) synced to your accounting software.
The number of monthly COGS journal displayed on the Adjustments & COGS > COGS tab on your accounting dashboard is controlled by the setting Update COGS for Number of Past Months.
Cin7 Omni creates a single cost of goods sold (COGS) journal (or transaction) from all the Sales Orders and Customer Credit Notes invoiced in each month. This reduces transactions sent to your accounting software and keeps your general ledger account tidy. During the month, Cin7 Omni updates the same journal every time there is a change or an addition to the COGS.
You can update the last 12 months' COGS journals: use the setting Update Transactions for Number of Past Months. It is recommended you set this setting to 1 at the beginning of each month whilst you are reconciling and closing off the prior month end as this will only sync the current month and the previous month end COGS journal. Once your prior month end is closed off, it is recommended to change this option to 0, which will only sync the current month’s COGS journal.
Sales Orders and Customer Credit Notes require all these conditions to be met for accurate COGS to be generated.
For sales orders, the Fully Dispatched Date and Invoice Date must be entered. The Qty Ordered field must equal the Qty Dispatch field for every line item in the sales order. COGS will not be calculated for any variance between these two numbers.
For customer credit notes, the Completed Date and Credit Note Date must be entered. The Qty field must equal the Qty Moved field for every line item in the customer credit note. COGS will not be calculated for any variance between these two numbers.
For both sales orders and customer credit notes you can set the Accounting Status (or Accounting Invoice Status) in the admin page. This must show either Imported or Do Not Import (if batched).
Once the above criteria have been met, Cin7 Omni will automatically calculate the COGS within the next 24 hours.
If you require a faster refresh of the COGS journal, from the Adjustments & COGS > COGS tab in your accounting dashboard, click Refresh Data. This will recalculate the COGS value to be sync to your Accounting software.
Check that COGS has been generated
If all the previous steps for closing, checking, and syncing have been completed during the month then COGS should be generated for all sales orders and customer credit notes synced to your accounting software.
This can be checked in the COGS Breakdown Report.
Select the COGS Breakdown Report link in the Month End module.
Select the Start Date and End Date according to the month that you are reconciling.
Click Search to run the report.
Review the Invoice Status and COGS columns to check all rows have the status set as Imported or Do Not Import and do not have a blank in the COGS column.
If any rows have a blank in the COGS column then it indicates COGS have not been calculated for these rows, and it needs to be generated for them.
If any row has an Invoice Status of something other than Imported or Do Not Import then it indicates that some change was done to this row and the Invoice needs to be resynced to the accounting software and COGS needs to be regenerated for that row.
Review these items individually in the sales orders or credit notes modules as appropriate.
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Some transactions that are correctly synced to the accounting software may have $0 COGS generated for them. This is expected if:
The total cost of the stock items being sold are $0.
The sales order is for selling non-stock items (e.g. the product is listed as non-stock within the product module, or does not exist in the product module at all). Cin7 Omni does not track the cost of non-stock items.
If sales orders and customer credit notes do not have COGS generated when it should have it generated and they do not fall under the two scenarios above, please follow these additional steps to generate COGS for them:
For Xero / QuickBooks Online
From the Accounting menu in the navigation, open your accounting dashboard.
Click the Adjustments & COGS tab.
Click the COGS subtab.
Click the Refresh Data button.
For QuickBooks Enterprise
From the Accounting menu in the navigation, open your QuickBooks Enterprise integration.
Click the Choose link in line with Import COGS.