The cost of sales component allows you to enter costs that are calculated by the amount of sales you make. You can do this on a product by product basis or you can use one Group Cost of Sales component to calculate for multiple products at once.
You will need to start with some income sources already in the plan. Check out the income/subscription component articles.
It’s also important to differentiate between cost of sales and inventory components.
Adding cost of sales
Link to one income component. Click any income component. Press the +Cost of Sales button. This adds another cost of sales component linked below the income component which you can click on to start editing.
Link to multiple income components in a group. Open the add components panel and click Group Cost of Sales. This will add a new component inside the group, it will look at all the income components inside that group to make its calculation.
Setup Options
Calculation options
This cost can be entered as a percentage of income (derived from an Income component), an amount per unit sold by an Income component, or as an amount
Percentage of income
Cost per unit sold
Manual entry
Calculating individually or at the group level
If all your products have different cost of sales, use the one product method below. If you have multiple products that all have the same cost of sales value use the group of products method. You may also want to use the group method for averaging your cost of sales. If you have a dozen products, you may just want to use a group cost of sales to say they all have about 30% cost of sales to save you time.
One product
- Click on an income component
- Click +COST OF SALES and name it in the list
- Click the new Cost of Sales component
- Enter a percentage. This is a percentage of the sales per month/quarter/year.
- Save Changes
Example
Sales = £1000 per month
Cost of Sales = 25%
Cost of sales will calculate at £250 per month on your reports
A group of products
- Choose a group with multiple income lines in. Click COMPONENTS
- Click GROUP COST OF SALES and name it in the list
- Click the new Group Cost of Sales component
- Enter a percentage. This is a percentage of the sales per month/quarter/year for every income line in the group.
- Save Changes
Example
Sales = £1000 per month, £2000 per month and £3000 per month
Cost of Sales = 25%
Cost of sales will calculate at £250, £500 and £750 totalled up to £1500 on your reports.
