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COGS & Margin

See true cost of goods sold and gross margin per order and over time.

What it does

Calculates true cost of goods sold — including vendor costs posted to the journal — and gross margin, per order and over time. A Reconcile This Total link traces every debit posted to the Cost of Goods Sold account back to the transaction that caused it, grouped by source, with the largest contributors listed first and anything that looks structurally off (an order whose job cost exceeds its sale price, an inventory item with an impossible quantity or cost) flagged separately.

Why it matters

Revenue without knowing true cost tells you nothing about whether an order was actually profitable. And a trial balance can be perfectly balanced while still being economically wrong — a stock-count correction or a vendor return posted to the wrong account inflates COGS without ever tripping a debit-equals-credit check. Reconciling the total down to individual entries is how that kind of error actually gets found.

How to use it

  1. Open COGS & Margin from Financial Statements.
  2. Review gross margin trend over the selected period.
  3. Drill into individual orders to see their specific cost breakdown.
  4. Use Reconcile This Total when the COGS figure looks too high (or too low) to trace exactly which entries are driving it.

Main buttons and actions

  • Change period
  • Drill into order-level cost
  • Reconcile this total

Example workflow

  1. Vendor costs post to COGS automatically when linked to an order.
  2. Margin is calculated as revenue minus COGS, updating as orders complete.
  3. If the total looks wrong, the reconciliation view finds the specific entry — often a stock movement, not a sale — behind it.