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How do I Get Started with A2X for BigCommerce? Step 7 - Enable Cost of Goods Sold Reporting
How do I Get Started with A2X for BigCommerce? Step 7 - Enable Cost of Goods Sold Reporting

How to set up Cost of Goods Sold reporting in A2X for your BigCommerce sales

Mariko Newman avatar
Written by Mariko Newman
Updated over a week ago

The following is an overview of how to enable the Cost of Goods Sold Reporting feature, available in the A2X for BigCommerce Basic plan and above. Cost of Good Sold reporting feature is not supported in the A2X for BigCommerce Mini plan.

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.

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. Use the drop-down menu to select this account or start typing to search for it.

  • 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 BigCommerce Inventory in your accounting system.

Learn to create the Inventory Asset account in Xero HERE

Learn to create the Inventory Asset account in QuickBooks Online HERE

Learn to create the Inventory Asset account in Sage HERE

When you have created the inventory asset account in your accounting system you will need to refresh your cache in Settings > Connections to retrieve this new account from your accounting system. Then you can update this account and save settings.

3. Input your Product Cost Prices

There are two methods to provide A2X with your cost price data.

The first method is explained HERE, and it is performed via the Manage Costs Tab. The second method is explained HERE, and it is meant for more advanced costs uploads via .csv file upload.

Once the cost prices are uploaded to A2X you will need to refresh the payouts in your A2X account. This can be done by either clicking the 'Refresh' button beside each deposit or by enabling bulk actions which you can learn more about HERE

Tip: When uploading different cost data you must "Refresh" a deposit 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 deposit 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 columns as below;

As each BigCommerce payout is processed, the quantity of product sold is multiplied by the cost value of the product and the totals are consolidated into entries that are grouped 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.

How does Auto-posting work for Cost of Goods Sold (COGS)?

Once all product costs are assigned for a deposit period and you are happy with your SKUs and cost price configuration, you can enable the automated posting. When this setting is enabled, any new Cost of Goods Sold (COGS) fetched after that day will be auto-posted to your accounting system.

Please note: COGS prior to the date auto-posting is enabled will need to be manually posted over to your accounting system. To learn more about Auto-posting click HERE

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.

Hint: If you are in chat and wish to view the article outside of the chat window, please click HERE.

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