Does A2X calculate COGS?
Yes - A2X has a COGS feature that calculates the total cost of the products sold on the ecommerce platforms for each settlement period. We'll posts the transaction to the accounting system to record the changes in inventory asset value and the cost of goods sold.
A2X with A2X COGS
In this scenario you will use A2X to post all the sales and fees. In addition you will enter your average cost prices into A2X. A2X will then also post an invoice which reduces the stock asset balance account in Xero by the actual cost of goods sold for the period. I'll include an article about that below. In this case it would be a monetary adjustment rather than unit number adjustment in Xero.
To enable this feature, start by going to your Costs tab at the top of your A2X page. We will need a cost for each SKU to calculate the values. After adding your cost, confirm the two accounts for A2X to offset by going to Settings > Cost of Goods Sold.
To post the cost of goods sold entries to QBO or Xero, start by clicking on the "review" icon by your settlement files or payouts. One the review screen, scroll down to the COGS section to post the entry. Or use the bulk actions feature to send the entries in bulk.
A2X without COGS
Some of our sellers use another inventory management system for actual stock management. For example Unleashed, Dear, Trade Gecko, etc. In this case they can either use this as a standalone system or with a number of these we can set up A2X to work alongside.
A2X Xero Tracked Inventory Option
We also have our own in house solution that links with Xero tracked inventory. However, we don't recommend it if your seller has a large number of SKUS as it can be hard to manage a large level of stock in Xero. However, if you seller has a smaller number of SKUs and would like to try it we can certainly switch it on for you.
If you have any questions reach out to the support team for more information.