Track Cost of Goods Sold (COGS)

Help me set up accurate Cost of Goods Sold (COGS) tracking for my Shopify store:

Business Model:

  Product sourcing: [MANUFACTURE / WHOLESALE / DROPSHIP / PRINT ON DEMAND / MIXED]
  Number of SKUs: [APPROXIMATE SKU COUNT]
  Primary suppliers: [NUMBER OF SUPPLIERS]
  Inventory accounting method preference: [FIFO / WEIGHTED AVERAGE / SPECIFIC IDENTIFICATION]


Cost Components per Product:

  Base product cost (purchase price or manufacturing cost)
  Inbound shipping and freight costs
  Import duties and customs fees (if applicable)
  Packaging materials cost per unit
  Assembly or kitting labor (if applicable)
  Quality inspection costs
  Warehousing allocation per unit
  Landed cost = sum of all above components


COGS Data Entry:

  For each product or variant, I need to record:
    
      Supplier name and supplier SKU
      Unit cost in supplier currency: [SUPPLIER CURRENCY]
      Conversion rate handling (fixed or real-time)
      Minimum order quantity and bulk pricing tiers
      Last cost update date
    
  


COGS Reporting:

  Total COGS for the period: [REPORTING PERIOD]
  COGS as percentage of revenue (overall and by collection)
  COGS by supplier – which suppliers represent the highest costs?
  COGS trend over time – are product costs increasing?
  Products with highest COGS-to-price ratio (lowest margins)
  Impact of currency fluctuations on COGS


Inventory Valuation:

  Current inventory value at cost
  Inventory value at retail (potential revenue)
  Aged inventory report (items held longer than [60 / 90] days)
  Write-down recommendations for slow-moving stock


Shopify Integration:

  Recommend the best app for COGS tracking in Shopify
  Set up cost per item field for all products
  Configure profit reports using Shopify built-in reports
  Automate COGS calculation for orders with multiple items


Provide a step-by-step implementation plan and a template for recording costs.