The following is an overview of how to enable the Cost of Goods Sold Reporting feature, available on all A2X for Walmart plans.
1/ Enable Cost of Goods Sold feature
Go to your Settings > Cost of Goods Sold:
Then, Enable Cost of Goods Sold as shown below:
The Cost of Goods Sold entry that A2X sends to your accounting system will deduct the overall cost of goods sold value for that period from your inventory asset account balance and allocate it to your cost of goods sold expense account.
The next step of the set up is to:
2/ Map the Cost of Goods Sold expense account and the Inventory asset account
- Your accounting system may already have a Cost of Goods sold expense account which can save you having to create another one, if you don't necessarily need to. If your accounting system has a default Cost of Goods Sold account, then you can simply link it to A2X, as shown below:
- The Inventory account is a little different. The default Inventory account in accounting systems is generally reserved for the accounting systems internal inventory functions, therefore it is best to create a new Current Asset account* called Walmart Inventory in your accounting system.
The new inventory account can then be linked to A2X, as shown below:
Please note: You can account for COGS on one level or expand to other levels, if you business requires this level of tracking.
Click on the orange plus sign to expand and see the different levels of tracking:
Lastly, click Save Settings.
3/ Input your Product Cost Prices
There are two methods to provide A2X with your cost price data.
Once the cost prices are uploaded to A2X you will need to refresh the settlements in your A2X account. This can be done by either clicking the 'Refresh' button beside each settlements of by enabling bulk actions which you can learn more about HERE
Tip: When uploading different cost data you must "Refresh" a settlement to have A2X re-calculate and apply the new cost of goods sold values.
4/ Reviewing and sending COGS invoices to the accounting system
After you enable COGS in the A2X settings, upload your costs and configure your asset and expense accounts, you can click Review for a specific settlement to see the details of the COGS for that period, and send the data to your accounting system. The COGS entries will appear below the usual Sales and Fees entries, and you will see one or two entries depending on whether the settlement period spans more than one month.
You will see the number and cost of items sold divided into two categories:
As each Walmart settlement is processed, the quantity of product sold is calculated and the cost value of the product is consolidated into entries in the same way as the sales and fees.
Click "Send One/Two Invoices..." to send the COGS entry to your accounting. It needs to be sent separately from your sales and fees entry.
Note: At an accounting report level, a balance sheet report in your accounting system will show you your closing stock balance as at the end of any month or period, and your profit and loss report or income statement will show you the total cost of goods sold expense.
When you send the COGS entries over to Xero, they will be in Draft Bills.
All you need to do is click Approve!
When you send them over to QuickBooks Online, they are found in the Journals
just like the sales entries, but split between the various inventory and COGS accounts.
You don't need to do anything with the COGS entries once they reach QuickBooks.
Click HERE to head over to our COGS & Inventory support section where you can find more articles relating to the use of A2X's Cost of Goods Sold and Inventory Valuation features.
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