What does the Cost of Goods Sold line on My Profit & Loss report include?

When comparing the cost/unit totals from the Accounting>FBA & Merchant Sales pages with the Cost of Goods Sold line on the Profit & Loss report in Stratify, it is normal for these not to match.

This is because, in addition to the cost/unit amounts for the items that have sold, the COGS line on your Profit & Loss report includes costs captured from your reimbursements, returns, and removals/disposals/liquidations for the timeframe as well.

Reimbursements 

On the Accounting>Reimbursements page, you will see cost/unit accounted for on transactions with the descriptions like Lost_Inbound and Damaged_Warehouse where the reimbursements were in cash.  These amounts would be included in the COGS line on your P&L on the date of the reimbursements.

Refunds

On the Accounting>Refunds page, refunds that are unsellable, have a disposition reason, and were returned back to your inventory will receive a cost/unit credit to match Amazon returning an item to your inventory.  These amounts would be accounted for in the COGS line on your P&L on the date of the refunds, and the cost/unit credit ensures the cost is not counted twice as an expense to you if the item sells again.

Removals, Disposals & Liquidations

If you remove an item, you can mark it as unsellable on the Accounting>Disposition Management page.  In this case, the cost is tracked as a debit to the COGS line on the date the removal order was placed.

The Disposition Management page is also where costs are captured for disposals, liquidations, and MFN refunds.  The cost/unit amounts from these transactions are tacked in the COGS line for the dates they took place, as well.

Note: If you manually create a category named "Cost of Goods Sold" under Accounting>Other Expenses, the expenses can be lumped in with the COGS we automatically track for you on the Profit & Loss report. We recommend avoiding this to prevent confusion.