How to Use:
Go to Xero Integration in EMERGE. In the Stock Adjustment COGS Mapping, there are processes of tracking and categorizing COGS: landed COGS and non-landed COGS.
You can turn on or off which kind of COGS you want to export to Xero. You can turn on both of them.
There is a reminder about this process:
"Export stock adjustment COGS from EMERGE to Xero's manual journal. Positive adjustments debit inventory and credit COGS, while negative adjustments credit inventory and debit COGS. This ensures precise financial tracking and effective inventory management."
Explanation: In double-entry journal:
Negative stock adjustment means recognizing a loss inventory(product sold or lost)
Debit (increase) the COGS as an expense, representing the cost of products sold or lost
Credit (decrease) the inventory as reducing stock on hand, representing the deduction in your stock
2. Positive stock adjustment is the other way around
In the Export to Xero tab, click to select the type of stock adjustment you want to export.
Customer's invoices and Customer's receipts are the positive adjustments
Supplier's invoices and Supplier's payments are the negative adjustments
In Xero, each COGS type will create 2 separate manual journals based on different ways of calculating COGS.
Landed COGS: Includes all expenses associated with getting a product from the supplier to its final destination. It encompasses the purchase price as well as additional costs such as shipping, customs duties, insurance, taxes, and handling fees.
Non-landed COGS: Having only the direct purchase cost of a product and excludes any additional expenses related to bringing the product to its selling location.
This is the manual journal detail:
Narration = Stock adjustment number COGS kind (landed COGS or Non landed COGS)
Date = Stock adjustment date
Description = Product name [SKU] Account type (Inventory or COGS)