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OGS Recalculation

COGS Recalculation in PrismERP provides businesses with a powerful tool to maintain accurate and updated cost reporting. When purchase costs change or inventory records are adjusted, recalculating the Cost of Goods Sold (COGS) ensures your financials and profitability metrics reflect the latest data.

What is COGS Recalculation?​

Over time, your inventory costs may shift due to:

  • Vendor price changes
  • Manual inventory adjustments
  • Backdated purchase entries
  • Updated freight or landed costs

COGS Recalculation enables you to recompute item-level cost values across sales transactions to maintain consistency between your inventory cost and sales profitability.

Key Features​

Full or Partial Recalculation​

  • Recalculate COGS for all items, a selected product, or for a specific period (monthly, quarterly, etc.).

Date-Driven Reprocessing​

  • Choose specific date ranges to target past sales or inventory movements that need cost updates.

Costing Method Alignment​

  • Applies the selected costing method (FIFO or Weighted Average) consistently across all affected items.

Linked Document Adjustment​

  • Automatically updates Sales Invoices, Delivery Challans, and Ledger Entries with the new COGS values.

Preview Before Update​

  • View the recalculated COGS report before applying changes to your transactions and accounts.

Audit Trail​

  • Full logging of when, why, and by whom COGS was recalculated—ensuring financial transparency.

How to Perform COGS Recalculation​

COGS Recalculation

Steps:​

  1. Select date range or item(s) for which recalculation is needed.
  2. Choose costing method to apply.
  3. Click "Preview Recalculation" to view the impact.
  4. If correct, click "Recalculate" to update transactions.
  5. System will update all relevant records and ledgers.

Example Use Cases​

ScenarioUse of COGS Recalculation
Backdated PO added after salesRecompute COGS to reflect new purchase cost
Mistaken manual stock adjustment correctedRe-align COGS to current inventory values
Switched costing method (FIFO → Average)Apply new costing policy on past sales
Added freight charges post-GRNUpdate item cost and recalculate COGS accordingly

💡 Best Practice: Run COGS Recalculation at the end of every month or quarter to align costing and profitability before closing books.

With COGS Recalculation in PrismERP, you never lose sight of your true inventory cost—ensuring financial decisions are made with clarity, consistency, and confidence.