How COGS is calculated

Question: In some sales reports there is the COGS (Cost of goods sold) column, but is hard to understand how it is calculated, is there a way to know the details of how this amount is calculated?

Answer: The Cost of goods sold is calculated when a finished product of a Production document is sold. To understand the way the production costs are calculated please read this.

Once the cost of good produced is calculated 1C:Drive will calculate the COGS based on the quantity of the production.

For example: If we produce 10 tables with a production cost of 1000 EUR, the COGS of these tables will be equal to 100 EUR for each one. If we sell 2 tables to a customer the COGS amount will be equal to 200 EUR.

The COGS value also will depend on the inventory valuation method set in the  accounting policy of the company. For FIFO method the COGS calculation will be as in the example, for Weighted average, is important to take into account the cost of goods produced of all the batches for a better understanding. All of these calculations are made automatically by 1C:Drive.