A2X for TikTok Shop - Cost of Goods Sold

Tracking product costs for each item you sell gives you a better picture of how your business is truly earning. With TikTok Shop, sales can move fast, and it's easy to see revenue climb without knowing what those sales actually cost you.

A2X's Cost of Goods Sold (COGS) feature calculates the cost of items in each TikTok settlement and posts it to your accounting system alongside your sales. This helps you track gross margin profitability automatically and show you how your TikTok channel is performing.

This feature is available to any active A2X for TikTok Basic plan and above.

To start using COGS for TikTok, follow the steps below:

1. Go to Settings > Cost of Goods Sold

2. Select Enable.

3. Select your COGS Expense account and your Inventory Asset account from the dropdown menus.

4. Click Save settings.

Optional: To split your COGS by fulfillment type, click the + sign next to Cost of Goods Sold to expand the mapping options. You can map specific accounts for Fulfillment by TikTok (FBT), Merchant Fulfilled (FBM), and Fulfilled by 3rd Party Logistics (FB3PL).

A2X offers four options to add your product costs. Go to the Costs page to view the available tabs and choose your preferred method.

Enter the costs directly in the Cost table or upload a CSV file. From the Manual tab, select the cost currency from the dropdown. Manually type in the cost price for each SKU and then click Save Costs.

To upload your SKUs in bulk - click the Download .CSV button to download your cost table. Once you have completed the .CSV file, you can click the Upload .CSV file button to automatically save your costs.

For best results, ensure:

Setup the daily automated sync using a Cloud CSV file to keep your costs updated automatically. For the detailed instructions go to Streamline Cost Updates with Cloud Hosted CSV.

If you are using Finale inventory software, get an automated daily sync of your cost to A2X. Go to Syncing Costs with Finale Inventory and A2X for the detailed instructions.

If you are using Settle inventory software, connect your settle account for a daily automated sync of your product costs. Go to Syncing Costs with Settle and A2X for the detailed instructions.

Once the COGS accounts are mapped and the product costs are entered, you can review the calculated COGS and post them to your accounting system.

Go to Settlements and Refresh the settlements.

Settlements have to be refreshed in order for A2X to calculate the COGS amount for each detected SKU within the settlement.

To refresh a single settlement, click the ellipses (three dots) on each settlement and select Refresh.

To refresh settlements in bulk, select the top-left box. Then click Refresh.

Open the settlement to review the generated COGS invoice.

Click the ellipses and select Review or click the date range to open the settlement.

Click post to send the invoice to your accounting system.

Once your cost prices are set in place, and you are happy with your COGS mapping, you can enable auto-posting of COGS invoices. When enabled, A2X will automatically post any new COGS invoice data to your accounting system.

To enable this setting.

Note: COGS data from before the date you enable auto-posting will not post automatically. You can use the bulk actions on the Settlements page (explained in the section above) to quickly post your historical COGS to your accounting system.

If TikTok marketplace is integrated inside your Shopify account and you are using A2X for Shopify and posting COGS, you may run into COGS duplication issues. To prevent this from happening, you can either choose to disable the posting of COGS from your A2X for TikTok account, or follow the instructions below on how to remove TikTok COGS from A2X for Shopify account.

If COGS is enabled in both A2X for Shopify and A2X for TikTok Shop, please let us know and we can guide you through the crossover steps 🙂