I am proposing a more accurate and in-depth COGS report that breaks down key areas that businesses need separate in order to accurately manage and report their financial accounts on P&L’s.
COGS:
Currently Breww can only produce a COGS report that contains the wastage built into the COGS, technically this is Cost To Produce as it contains wastage. In the Cost Report section of each batch, Breww refers to this as “Production Cost”, but then converts this to COGS on the current pre-built report. Normal Cost of Goods Sold (Breww recognises this to be Value or Stock Valuation) shouldn’t have wastage associated to it as the wastage sits on a separate line to COGS in a P&L, just as electricity and other direct costs do.
Product Breakdown Per Batch:
Separating the products by batch will make it a bigger report (I get that), but it is important to be able to associate the costs to a particular batch produced and conduct audits on costs.
Duty Paid Per Unit:
The current COGS report doesn’t have a line for duty. Duty, just like wastage should sit separately to the COGS, but it is directly related to the product sales and would allow users to break down these costs and allocate them accordingly. I know this information can come from the monthly duty report, but again having a report all in one place would significantly save time for users.
Have you seen the new Balance sheet syncing feature? I suspect this might cover exactly what you need. Can you let me know if it does, and if not, why not? Cheers.
Hi Luke,
The feature is requesting that the Breww COGS report, accurately report the Cost of Goods Sold and not Cost To Produce. Wastage shouldn’t be included in the COGS. We are currently only able to see the true COGS “value each + packaging costs” in the Valuation report, however Breww seams to report COGS as “Production Costs + Packaging”.
What I am requesting, is that there be a more detailed and “corrected” COGS report to include the columns in the title of this feature.
Alternatively if this doesn’t fit within the approach Breww takes to COGS, I would request that the custom reports & data exports section be broadened to allow users to create such reports themselves.
Currently this is causing an immense amount of work having to pull a Breww COGS report, then a batch distribution report to work out which batch of each product sold that month and then finally a valuation report, taking the “value each + packaging ” costs to accurately report our COGS.
Another reason wastage shouldn’t be included in the COGS is because wastage should be accounted for when it is actually lost and not when that product sells - i.e. if 50L or beer was lost in January during production it would be accounted for (in the accounts and for Duty reasons) in January and not when it starts to sell (say June).
Thanks for the reply. When you say, “Wastage shouldn’t be included in the COGS,” is this expected wastage (left in pipes, etc.) or unexpected wastage (accidentally spilt on the floor)?
I’m not an accountant, but from my understanding of how things should work, I agree with your suggestion if the wastage is unexpected, but I don’t think it’s correct for normal levels of wastage to be excluded from COGS.