Sync COGS to QuickBooks Online
Overview
Find out how to synchronize your cost of goods sold (COGS) with QuickBooks Online.
Cost of goods sold (COGS) is the cost you paid for the goods you’ve sold: specifically, it’s the sum of the landed costs of units dispatched in sales orders with
a Fully Dispatched date,
an Invoice Date, and
a Accounting Invoice Status set to Imported or Do Not Import.
To calculate your business’s gross profit, QuickBooks Online subtracts COGS from revenue. And to make your COGS available in QuickBooks Online, you must synchronize your COGS from Cin7 Omni.
At the beginning of each month, Cin7 Omni adds a new COGS transaction to the Adjustments & COGS > COGS tab of your QuickBooks Online integration dashboard. The value of that transaction stays in sync with the value of that month’s COGS. You’ll see either just this month’s COGS (minimum) or also COGS for the past 12 months (maximum).
When you first sync a month’s COGS to QuickBooks Online, a matching journal entry is created in your general ledger. That journal credits your inventory account and debits your COGS account. If you re-sync that month’s COGS, the matching journal entry is updated.
Each journal is given a unique reference, shown in the Reference column on the Adjustments & COGS > COGS tab of your QuickBooks Online integration dashboard. Note that, if the reference on the dashboard exceeds 21 characters, it will be truncated to 21 characters in QuickBooks Online.
You can choose how many past months’ COGS to re-sync, although you can't re-sync COGS for months on or before your latest QuickBooks Online closing date. You can also customize the prefix of your COGS journal entries (see below).
Sync COGS
Log in to Cin7 Omni.
From the Accounting menu in the navigation, open your QuickBooks Online integration.
Open the Adjustments & COGS > COGS tab. Here you’ll see a new transaction each month once you’ve started generating COGS.
Select Update All to sync your COGS. When you re-sync COGS, the original matching journal entry is replaced in QuickBooks Online.
The warning icon next to a month’s COGS means its Date is on or before your latest QuickBooks Online closing date. This COGS won’t sync.
Customize COGS prefix
When you sync COGS to QuickBooks Online, the matching journal entry is given a unique reference. The reference is the relevant month and year and an optional prefix you can add using the COGS Prefix setting in your admin accounting settings (for example, XXX Jun 2023).
However, changing your COGS Prefix will change the prefixes of past months’ COGS transactions visible on your QuickBooks Online integration dashboard (Adjustments & COGS > COGS) – how many past months’ COGS transactions are visible is controlled by the Update transaction for number of past months setting in your QuickBooks Online integration settings.
If you change the prefix of a past month’s COGS transaction, a new journal entry for that month’s COGS will be created in QuickBooks Online when you sync. That means you’ll have two COGS entries for that month.
You must find and manually delete the old journal entry for that months’ COGS.
FAQs
Can I debit COGS to alternative general ledger accounts?
Yes, you can debit COGS to various alternative general ledger accounts. Each month’s journal entry will have multiple line items, and each line item can be debited to a different account.