Taxomate uses the average cost method. You enter your default average costs, and we use those costs to calculate your Cost of Goods Sold.
Many people ask how to account for changes in product costs during the year (for example, when a supplier changes a price).
OPTION 1. Update the product costs for each settlement. Open a settlement and select the Cost of goods sold tab. Where costs have changed, select the unit cost to Edit unit cost for that SKU.
OPTION 2. Update your default costs. Go to Settings > Default costs and edit the Default cost for the product. Taxomate uses default costs when it builds the costs for new settlements. Changes here do not update settlements that already have costs. To apply the new default cost to an existing settlement, open its Cost of goods sold tab and select Replace costs with defaults.
For example, import costs are part of COGS and can change during the year for the same SKU. You can always override the cost in the Cost of goods sold tab of each settlement.
Ask your accountant whether to recompute your average cost when a supplier price changes.