How should I enter consignment costs in Shopify POS for accurate bookkeeping?

[TBLBookkeeper]

Hello!

Our store is moving from a different POS for Consignment and fully on Shopify POS now.  We are moving away from having consignors, but still have a few.  When we enter the "cost" do we enter zero since it did not cost us anything for our inventory? Do we just enter the retail value being sold?  I am able to pull a report at end of month to know what to pay the consigner's percentage due and in our books it is COGS.  I am just wondering what should be entered in Shopify?  And how that transfers into the bookkeeping world.

Thanks!

[Victor]

Hi @TBLBookkeeper,

Thank you for getting in touch. There is no right or wrong answer here, but by entering in an accurate value in the "cost per item" field you'll better be able to keep track of your costs and calculate your profits within Shopify. You can enter in the amount you pay the consigner for the product in this field, with the amount you charge for the item on your store being added as the product's price. If you do this, you'll be able to better make use of the profit reports offered within the analytics section in the Shopify admin. I'd also recommend checking out our documentation on pricing your products for further guidance on product pricing within Shopify.

I hope this helps but please let me know if you have further questions.

Kind regards,

Victor | Shopify Social Care