Cost of goods sold (COGS)
What the goods you sold cost you to buy or make, the figure taken from sales to get gross profit.
COGS counts only the cost of the products that left: what you paid the supplier for them, plus what it took to get them ready to sell, like inbound shipping or materials. Rent, wages and marketing are not part of it.
Gross profit is sales minus COGS. For a period, COGS is opening stock plus purchases minus closing stock, valued with a method such as FIFO or average cost. Binhop records each unit's cost at the moment it's sold, so a sale's profit stays as it was when costs change later.
