If your Point of Sale solution supports Cost of Goods Sold ("COGS") tracking, Shogo can integrate these COGS with your accounting system.

However, if you are not doing Inventory Accounting in your accounting system, you would not want to enable COGS accounting in Shogo.

What is Inventory Accounting?

Inventory Accounting involves classifying all of the products you purchase for resale as an Asset on your Balance Sheet rather than posting all of your purchases directly to a COGS Account.  Using this approach allows you to defer "costing" the purchases until the date you actually sell the product i.e you recognize the cost on your Income Statement on the date on which you Sell the product as opposed to on the date on which you Purchase the product - thus providing you with a more accurate reflection of your operating margins.

In some cases (a Quick Service Restaurant for example), your "Inventory" (or the products you purchase) may be bought and sold within such a short time window, you may not care about the above matching principle and will simply post your vendor purchases directly to a COGS account rather than to an Inventory Asset account.  If you are posting purchases directly to COGS, do NOT enable the Shogo COGS accounting option.

Inventory and COGS accounts are specified at the category level.  Please note that this option is a VALUE based not a QUANTITY based integration (i.e. Shogo will post the cost of how much was sold not how many).  If you are applying your vendor invoices directly to a COGS account as you are paying your bills, you do not want to enable this option as it will result in duplicate COGS amounts as well as reduce an Inventory Asset account balance that does not exist.

You will first have to enable Inventory/COGS in your Store Settings so we can receive the data from your POS provider.

Enable Inventory/COGS in your Store Settings

Enable Inventory/COGS by selecting the store you would like to enable 

Navigate to Settings>Stores

Click the location you would like to edit

Click on the Features tab

Click Inventory/COGS to enable it

Set up Inventory/COGS in your Accounting Settings

Navigate to Settings>Accounting

Select the store you would like to edit

Click on the General Settings section of the Accounting Mapping

Click on the Accounting Options tab

Select your Inventory/COGS options

Next, Click on the Inventory COGS mapping section

Map your Inventory and COGS accounts along with any Departments, Classes, Locations, etc that you need reported in your accounting system. Check off Ignore for any items that you do not want listed in your daily Inventory/COGS entry.