How does Pocket record COGS?

Remember that COGS % rule that was entered into Pocket when you onboarded? It represents blended average cost of your product divided by blended average sales price of your produce. For example if your blended average product cost is $4 and your blended average sales price is $16, then the COGS % is 25% ($4/$16).

This is an important factor to understand how COGS is recorded. Pocket automatically calculates and records COGS onto your books based on this COGS %.

When you make a sale, Pocket multiplies that sale by the COGS % and records the corresponding COGS amount. 

For example, if you make a $100 sale, and your COGS rule is 25%, then Pocket will record $25 of COGS for that $100 sale.