Setting up Quantity-based COGS by products
If you're looking for how to set up COGS in TrueProfit, check out the Setting up Cost of Goods (COGS) for all products article.
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS. This feature is available in the Ultimate and Enterprise plan only. If you don't have it, please upgrade your plan to enjoy this feature.
In this article:
Editing COGS for a product or variant in Cost of Goods
Setting Up Quantity-based COGS
How to enter COGS with quantity break for your products
By default, TrueProfit syncs the COGS from your Shopify admin and apply it in cost calculations. You can also manually edit and update the COGS for your products in the Product Cost settings.
You can add or change the COGS for a product or variant in your store, click on the edit icon. In this modal, there are two main settings for COGS:
Pricing mode: Fixed cost or Quantity-based cost
Fixed cost: Set a fixed COGS for a product. TrueProfit also has the Historical COGS feature to help you manage changes in product costs over time.
Quantity-based cost: Set up different COGS ranges for product batches by unit count. Read more about this feature below.
Apply to specific variants or count all variants as a single product
If you choose to apply to "Specific variants", you can edit the COGS and Historical COGS for each variant in the product's dropdown.
If you choose "This product, all variants included", you won't be able to edit the COGS and Historical COGS for the variants of this product.
As you chose the Quantity-based cost pricing mode and applied the COGS to your product or variant as above, the COGS will apply to the number of units per level.
In each level, there are 2 fields: Units per level and Cost per level. Units per level are the unit limit in each level to calculate COGS for an order. For example, when an order reaches the limit of level 1, the remaining items will take the COGS amount in level 2, and so on. The total COGS in this order will be the sum of all items purchased at each pricing level.
If you have the same COGS based on quantity for all variants, you can set quantity-based COGS at the product level by choosing the This product, all variants included to apply the COGS rule to the product as a whole.
You can choose one or multiple variants to set the same rate with quantity-based COGS.
As an example, the product costs given by your supplier are:
$5.80 if a customer purchases 1 unit
$8 if a customer purchases 2 units
$10 if a customer purchases 3 units or more
In the app, you'll need to deduct the COGS value in each level to have the correct Total COGS. Here's how to calculate the Cost per Level with the given costs above:
If an order has 2 units: Total COGS = (1*5.8) + (1*2.2) = $8
If an order has 3 units: Total COGS = (1*5.8) + (1*2.2) + (1*2) = $10
If an order has 5 units: Total COGS = (1*5.8) + (1*2.2) + (3*2) = $14
That means:
Level 1: $5.8 per unit
Level 2: $2.2 per unit
Level 3: $2 per unit
Your input in each level will be as follows:
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS. This feature is available in the Ultimate and Enterprise plan only. If you don't have it, please upgrade your plan to enjoy this feature.
In this article:
Editing COGS for a product or variant in Cost of Goods
Setting Up Quantity-based COGS
How to enter COGS with quantity break for your products
Editing COGS for a product or variant in Cost of Goods
By default, TrueProfit syncs the COGS from your Shopify admin and apply it in cost calculations. You can also manually edit and update the COGS for your products in the Product Cost settings.
You can add or change the COGS for a product or variant in your store, click on the edit icon. In this modal, there are two main settings for COGS:
Pricing mode: Fixed cost or Quantity-based cost
Fixed cost: Set a fixed COGS for a product. TrueProfit also has the Historical COGS feature to help you manage changes in product costs over time.
Quantity-based cost: Set up different COGS ranges for product batches by unit count. Read more about this feature below.
Apply to specific variants or count all variants as a single product
If you choose to apply to "Specific variants", you can edit the COGS and Historical COGS for each variant in the product's dropdown.
If you choose "This product, all variants included", you won't be able to edit the COGS and Historical COGS for the variants of this product.
Setting Up Quantity-based COGS
As you chose the Quantity-based cost pricing mode and applied the COGS to your product or variant as above, the COGS will apply to the number of units per level.
In each level, there are 2 fields: Units per level and Cost per level. Units per level are the unit limit in each level to calculate COGS for an order. For example, when an order reaches the limit of level 1, the remaining items will take the COGS amount in level 2, and so on. The total COGS in this order will be the sum of all items purchased at each pricing level.
If you have the same COGS based on quantity for all variants, you can set quantity-based COGS at the product level by choosing the This product, all variants included to apply the COGS rule to the product as a whole.
You can choose one or multiple variants to set the same rate with quantity-based COGS.
How to enter COGS with quantity break for your products:
As an example, the product costs given by your supplier are:
$5.80 if a customer purchases 1 unit
$8 if a customer purchases 2 units
$10 if a customer purchases 3 units or more
In the app, you'll need to deduct the COGS value in each level to have the correct Total COGS. Here's how to calculate the Cost per Level with the given costs above:
If an order has 2 units: Total COGS = (1*5.8) + (1*2.2) = $8
If an order has 3 units: Total COGS = (1*5.8) + (1*2.2) + (1*2) = $10
If an order has 5 units: Total COGS = (1*5.8) + (1*2.2) + (3*2) = $14
That means:
Level 1: $5.8 per unit
Level 2: $2.2 per unit
Level 3: $2 per unit
Your input in each level will be as follows:
Updated on: 15/05/2024
Thank you!