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COGS Calculation

Accurately Track and Calculate the Cost of Goods Sold for Your Business

Understanding your true product costs is crucial for profitability analysis and pricing strategy. PrismERP’s COGS Calculation feature meticulously computes the Cost of Goods Sold by integrating inventory movements, purchase prices, and production expenses—giving you precise financial insights.

🧾 What is COGS Calculation?​

COGS represents the direct costs attributable to the production or purchase of the goods sold by your business during a period. PrismERP automates this calculation by factoring in inventory valuations, purchase costs, and adjustments, ensuring your financial statements reflect true costs.

📌 Example:​

When a batch of products is sold, PrismERP calculates COGS based on the purchase price and stock levels of that batch, adjusting for any discounts or overhead allocations.

Key Features​

✅ Inventory-Based Cost Tracking Utilize FIFO, LIFO, or weighted average methods to value inventory and compute COGS.

✅ Purchase Cost Integration Automatically include supplier prices, freight, and import duties in cost calculations.

✅ Batch & Lot-Level Costing Track costs at batch or lot level for precise margin analysis.

✅ Real-Time Updates Instantly reflect COGS in your financial reports as sales and inventory movements occur.

✅ Multi-Currency & Multi-Location Support Handle cost calculations across different currencies and warehouse locations seamlessly.

🔗 Integrated Modules​

  • Inventory & Stock Management
  • Purchase & Procurement
  • Sales & Invoicing
  • Financial Accounting & Reporting

🚀 Know Your True Costs, Drive Better Decisions With PrismERP’s COGS Calculation, empower your business with accurate cost insights—fueling smarter pricing, purchasing, and profitability management.