Fix bug with COGS for Add-On BOM products Answered
The Add-on BOM feature works well with Purchase Orders. However, when products are added to Sales Orders, the Cost of Goods Sold (COGS) does not load correctly. Currently, only the assembly costs are applied, and not the full BOM costs.
Cin7 Support has mentioned that this is because the Add-on BOM feature was developed specifically for Purchase Orders. However, this seems counterintuitive. Why would any company manufacture a product and not expect to sell it? Ensuring that the correct COGS is calculated on Sales Orders is essential for accurate financial reporting.
We hope this can be addressed and improved in future updates.
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Hi Jolien,
Thank you for reaching out! Apologies for the delay in replying to this post.
When Add-on BOM products are included in the purchase order, you only need to add the finished or parent product to the sales order. The total unit cost of the parent product, which includes the cost of its child products, will be displayed in the sales order.
If the cost appears incorrect, I recommend refreshing the COGS for the sales order. Please note that the accurate COGS value is calculated only when all the required COGS conditions are met. You can find the updated value in sales order Go to Admin > Accounting COGS Value . This value should match the costs specified in the purchase order.
If you’re still experiencing discrepancies in COGS or have additional concerns, feel free to let me know, and we can address this further through a support ticket.
Hi,
We are experiencing constant issues with COGs not matching up. Are you saying that the COGS show movement into stock just fine but then are not tracked when being moved out through sales? How would one track the movement if not via sales or adjustments?
We use alot of BOMS so this does worry me-it is crucial for the COGS to be calculated correctly from sales.
We have to pull sold stock reports every time we place a larger order from overseas, and only recently found out that the products used in a production job were not showing in products sold, so we had a major issue with not having forecast the correct number of items used in BOMS/Prod jobs. I was told that we had to pull a separate report for prod jobs (the report did not even show in the default reports), which means that we now have to combine different Excel worksheets just to work out our forecasts.
I was wondering how everyone is able to work around this if CIN7 is not able to fix it.
CIN7, please look into this.
Yes exactly! So the assembled products can enter the stock correctly but when we put them on sales orders, the COGS are incorrect.
Hello Cin7, any updates regarding this please?
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