Disclaimer: Inventory management, costs, and COGS posting can be complex and may vary greatly depending on your specific business needs. If you need assistance in finding the best configuration, we recommend consulting an inventory specialist, such as an integrator or an ecommerce accountant. The information in this article is designed as a guide, and we advise speaking with an expert about your specific setup.
Cin7 offers two robust Inventory Management Systems: Cin7 Omni (the original Cin7 solution) and Cin7 Core (formerly Dear Inventory).
This article explains how to use A2X with Cin7 Core. Click here for the support article on using A2X with Cin7 Omni.
Many sellers use A2X alongside an Inventory Management System (IMS).
What is the difference between an Inventory Management System and A2X?
An IMS is designed to track, manage, and optimize physical stock levels, handling tasks like ordering, storing, and selling inventory. Typical IMS tasks include:
Creating and managing purchase orders.
Acting as the trusted source for buy & landed costs.
Receiving inventory and managing orders.
Dynamically updating inventory quantities on sales channels, including handling bundles.
A2X, on the other hand, specializes in ecommerce accounting. It captures and summarizes financial transactions from eCommerce platforms and marketplaces, handling the complexities of ecommerce sales, including:
Managing multiple payment processors.
Handling various currencies and payment periods.
Ensuring financial entries match bank deposits for accurate reconciliation.
What is the optimal configuration for A2X and Cin7 Core?
Option one - If you’re using QuickBooks or Xero:
Connect both A2X and Cin7 Core to QuickBooks. In this setup:
A2X will post your sales entries.
Cin7 Core will post your COGS entries.
Key considerations
You need to configure Cin7 Core to not post sales (turn off 'Sales Invoice Posting' in the Xero/QBO integration settings). Here is an example of how that could look:
A2X’s posting frequency depends on the channel (e.g., Amazon settlements are bi-weekly; Shopify postings may be daily or every few days).
If Cin7 posts your COGS more frequently than A2X posts your sales, your margins will be skewed in your accounting software until A2X posts the sales entry.
There could be discrepancies between the orders accounted for by A2X and the IMS (e.g., IMS might post at the fulfillment date, while A2X posts at the payment date).
A note about Xero: Cin7 Core recently updated its Xero integration to allow for greater flexibility. You can now choose to turn off either Sales or COGS postings individually. Previously, sales posting could not be switched off while leaving COGS posting on. This means you no longer need to post both or neither—you can tailor the settings to suit your specific accounting needs.
How to Enable or Disable COGS in A2X
To enable or disable COGS in A2X:
Go to Settings > COGS.
Select Enable COGS or Disable COGS, depending on your setup.
COGS is available on all A2X plans, except Mini plans. Click here to find out more about how A2X COGS works.
If you have any questions regarding A2X’s configuration, please reach out to our support team.
If you have questions about the configuration for Cin7 Core, we recommend you contact their support team or visit their support center.