If you have Cost of Goods Sold (COGS) reporting enabled in A2X for TikTok Shop, this article explains how cancelled orders affect your COGS and what options are available.
How COGS works for cancelled orders by default
By default, A2X does not reverse COGS when an order is cancelled. The cost of goods is posted on the original sale and remains in your accounts even if the order is subsequently cancelled or refunded. This means your COGS will not automatically adjust when a cancellation is processed.
Refunds as Returns option
If you would like A2X to post a COGS reversal entry when an order is cancelled or refunded, you can enable the Refunds as Returns option.
To enable this:
1. Go to Settings in your A2X account.
2. Select Cost of Goods Sold.
3. Turn on the Refunds as Returns option.
With this option enabled, A2X will post a separate COGS reversal entry each time a refund or cancellation is processed, making it easier to track inventory movements for returned items.
Note: If you are unsure which approach is right for your business, we recommend consulting your accountant.