Costs · P&L line 17
COGS
Cost of goods sold: what the products themselves cost you.
Formula
Σ unit cost × units sold − refund credits
COGS is the unit cost of everything you sold, minus the cost credited back for anything refunded. It does not include shipping, packaging or payment fees, which are fulfilment costs rather than product costs.
The detail that decides whether it is trustworthy is dating. A supplier price that changed in April should apply from April forward and leave March priced at what March actually cost.
A missing unit cost is worse than a wrong one, because it silently inflates margin. It should always be flagged rather than treated as zero.
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