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Let's explore Klavena's inventory tracking feature to help calculate cost of goods.
Inventory tracking is important in the accurate calculation of cost of goods sold (COGS). With inventory tracking enabled, every time you sell a product, QuickBooks Online will know the proper cost of goods sold to attribute to that sale.
Note: Without inventory tracking, Klavena assigns all sales/refunds to a generic noninventory item in QuickBooks Online named "Product". With inventory tracking, all sales/refunds will be mapped to the corresponding inventory item.
QuickBooks Online, by default, uses the first-in-first-out (FIFO) method for calculating cost of goods sold. That is, the first goods purchased are the first goods sold. Another way to think about this is that the cost of goods sold for a sale is assigned the cost of the oldest inventory of that item.
This calculation is done automatically for you. All you need to do is create the purchase orders for when you purchase the inventory and Klavena will help you create the sales receipts for when you make a sale on your inventory.
Note: Inventory tracking is only available on QuickBooks Online Plus and Advanced. The feature is also only available on the Klavena Professonal Plans.
Enable inventory tracking on Klavena. On the integration page, navigate to “Settings and Mapping”
<aside> 💡 Note: You need to configure inventory tracking separately for each integration.
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Enable inventory tracking on QuickBooks Online.