Also known as: Total Cost of Goods Sold, COGS
When you've set up the cost of your ingredients, the Cost of Goods Report will show you how much a day/week/month of business has cost you.
How to set up
The Cost of Goods Report shows you totals based on: your transactions × Total Ingredient Cost.
You have to start off setting your Total Ingredient Cost for each product.
Let's say you sell chicken sandwiches. You want to calculate how much each sandwich costs you, based on chicken costs. These are the facts:
- You sell chicken sandwiches at $7 each (price)
- Each sandwich uses 10 grams of chicken (quantity)
- You buy chicken fillets at $5 per kilogram (cost)
This is what you would do:
- Create the chicken sandwich product,
- Set the "chicken sandwich" price to $7. Save.
3. Create a chicken product
4. Set the "chicken" type to Ingredient
5. Set the "chicken" cost to $5. Save.
6. Go back to the "chicken sandwich" product. Go to the Stock Management tab
7. Click Add Ingredient and enter "chicken". Under Quantity, enter 0.01.
Why 0.01? Because you only use a 1%, or 10 grams, of the whole kilogram of chicken that you buy. Click Save.
8. When you return to the Stock Management tab, the Calculated Cost will update. In this case, it costs you $0.05 per chicken sandwich.
9. Repeat for any other ingredients.
10. After you've made some transactions, go to the Cost of Goods Report to see the Total Cost On Hand.
At the bottom will be a Total Cost based on all the products you have sold.