thread Re: Why is my COGS reading as Revenue? in Orders, Menu Items, Catalog & Fulfilment

Why is my COGS reading as Revenue?

MBenji — Sat, 20 Sep 2025 10:21:22 GMT

I have input the unit costs on all my items along with the retail price. When I run the report, some items are reading as the COGS and then others are reading as the revenue under the same COGS column. I've gone back to double check, and everything is under the correct column for the item.

Re: Why is my COGS reading as Revenue?

RobynR — Tue, 19 Mar 2024 17:25:13 GMT

Hey @MBenji,

Thanks for joining the Community! I'd be glad to assist with the situation you're encountering.

Could you please share a screenshot of the specific issue you're facing? Feel free to omit any personal details. This will help me better understand and address the problem.

Re: Why is my COGS reading as Revenue?

MBenji — Tue, 19 Mar 2024 21:48:42 GMT

In this screen shot, the top items are displaying the correct cost of goods ($10.99), but the item below it is displaying the retail price ($40).

https://snipboard.io/O8Yco0.jpg

Re: Why is my COGS reading as Revenue?

TwinkleToes — Wed, 20 Mar 2024 16:02:23 GMT

Hi @MBenji,

Welcome to the Seller Community!

The COGS functionality uses a First-In-First-Out (FIFO) methodology for determining what cost is applied to the sale. This accounts for changes in the purchase price from your vendor. If you purchase 5 units of an item for $20 and then purchase an additional 10 units at $22, the first five units sold will have a COGS of $20 and then the remaining sales will use the $22 cost. The COGS is based on the Unit Cost that was used when receiving inventory and not the current Unit Cost displayed for the Item/Variation.

The first thing you'll want to do is review your stock transactions to confirm what Unit Cost that was used when receiving the inventory. Select the item from your Item Library and use the View stock history to confirm that the retail price was not mistakenly used when receiving the inventory.

Here's a sample of an item's Stock History with different costs.

The Small,Black variation was received on 7/2/23 for a cost of $17.75, then sold on 1/11 for the same cost. The variation was restocked and purchased from the vendor for $19.75. When the Small,Black sells again, it will use the $19.75 cost. If the sale had not happened and there were 2 Small,Black variations in inventory, the first sale would use a COGS of $17.75 and the second sale would use the $19.75.

Note: the same FIFO methodology is used when managing your stock for removing inventory (damage, theft, etc.).

Re: Why is my COGS reading as Revenue?

MBenji — Thu, 21 Mar 2024 00:53:43 GMT

Thank you for this! I did go back though my history, and the retail price was plugged in instead of the COGS. I went through and changed all the prices, but the changes don't seem to be changing the reports. Is it supposed to? Or will it only change the sales going forward?

Re: Why is my COGS reading as Revenue?

frances_a — Thu, 21 Mar 2024 01:15:23 GMT

Hello @MBenji

Glad a fellow Seller was able to help here!

These changes will only affect your reports moving forward.

If you have further questions, please let us know.