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Importing COGS into Xero

Last updated 12/01/2021

How to import Cost of Goods Sold (COGS) to Xero.

Overview


If you are using the Perpetual inventory accounting method, you will import COGS into Xero to decrease your inventory asset/SOH account and increase your COGS account.

Accounting Methods

If you are using the Periodic method, COGS are still calculated, but you do not need to import COGS into your Xero account. For the difference between the two methods, please see Perpetual Method and Periodic Method.

Cin7 generates Cost of Goods Sold (COGS) for each Sale provided that:

  • you have entered a Fully Dispatched date,
  • you have entered an Invoice Date, and
  • you have imported the Sales Order into Xero or set to 'Do Not Import'.

Importing COGS to Xero credits your Inventory account and debits your COGS account by the same value. For further information on COGS please see our article Cost of Goods Sold in Cin7.

Cin7 creates a single COGS journal for each month to import into Xero. This reduces transactions sent to Xero and keeps your ledger tidy. Cin7 updates the same journal every time there is a change or an addition to the COGS. The monthly journal will always be available to import in the Xero module.

By default, Cin7 updates both the previous month and the current month's COGS journals. If you wish, you can also change the system to update COGS journals up to 6 months prior to the current month. 

Importing COGS


Importing All COGS at the same time

This method will import or update multiple monthly COGS journals at the same time. This is the quickest method.

  1. From the left navigation, select Accounting, then Xero.
  2. Click Upload Adjustments & COGS
  3. Click Upload COGS
  4. Click Update All
  5. A confirmation will notify you if Cin7 has imported the COGS values successfully.

FAQs

I use alternative COGS accounts that match my Alternative GL Accounts - how do COGS work in this situation?

This method still works if you have multiple COGS accounts. With alternative COGS accounts, your monthly COGS journal will include multiple lines for each Alternative Account.

I've imported the COGS for this month already, but the value has reappeared in my Xero module for import?

That's correct, there will always be a transaction to import - usually, it will change as your COGS change throughout the month. Don't worry though, it overwrites the existing journal, it won't import a new one.