COGS (Cost of Goods Sold)
COGS (cost of goods sold) is the total cost of the inventory you've sold during a period. In Peasy, that cost comes from the purchase, lot, and production data already captured in the app.
How It Works in Peasy
- When you receive a purchase order, Peasy stores the unit cost for that inventory
- Freight costs from bills are distributed proportionally across received items and included in landed cost calculations. You can also set freight per item directly on the Landed Cost column in Buy > Items to buy.
- For lot-tracked items, the assigned lot carries the cost basis forward so the correct lot cost can be used
- When you complete a work order, Peasy records the production cost for the finished output and updates the template's unit cost
- Inventory history and related cost views show COGS when Peasy has the needed receiving, lot, or production-cost data
- Manufactured items can use template and production costs in addition to received purchase costs
Adding Costs Beyond Raw Materials
The unit and batch cost on a template doesn't have to stop at raw materials. You can roll additional costs into your finished-goods cost in two ways:
- Co-manufacturer or co-packer labor — Use the Co-Manufacturer Cost Basis field on the template to capture what a third-party charges per unit or per batch. Toggle Include in COGS to roll that cost into unit and batch cost. See Co-Manufacturer Cost Basis.
- Inbound freight — Freight from PO bills distributes proportionally across the items on that PO, raising their landed cost. Or set freight per item directly on the Landed Cost column in Buy > Items to buy.
- Packaging and overhead — Packaging components are just regular buy items added as inputs on your template. If you want to track an overhead rate, create a "buy item" that represents it (e.g., "Production overhead per batch") and add it to the template with the appropriate quantity.
Where to See Cost Roll-Ups
- Template detail page — The unit cost and batch cost shown reflect current ingredient costs plus any included co-manufacturer cost.
- Item detail panel — Shows current cost basis and the most recent cost from receiving or production. The Avg Cost field shows the average cost across the active buy and make variants in the item's family, shown in the family's selected Inventory Unit (so if you've picked a display unit like "case", the figure scales to that unit). It's informational — sales-order COGS still comes from the receiving and production data captured for the specific lot or work order.
- Inventory History — Records the cost recorded at the moment of each transaction (receive, work order completion, adjustment), so you can audit how cost changed over time.
Refreshing Template Costs
Template unit costs update automatically when their inputs change, but if you've edited buy-item prices or building-block costs and want to force a fresh roll-up, use the Recalculate COGS button (the refresh icon next to the Unit cost column header on the Templates list, or in the Configure tab when a template is open). The list-level button recomputes every active template; the per-template button recomputes the open template along with any building blocks it depends on.
Why It Matters
Accurate COGS is essential for understanding your true profit margins. Peasy rolls those costs up from your receiving and production activity so you don't have to rebuild them in a spreadsheet.
