Opstarts automatically calculates your Cost of Good Sold for you. You can view your COGS broken down by individual product, as well as separated into COGS expenses and COGS employee costs. Your COGS is also used to calculate your Gross Margin.
Automatically generated COGS costs (Direct)
Opstarts will automatically designate the following costs as COGS and allocate them as direct COGS expense for specific products:
- Linked expenses from products. If you create a link from a product (such as a server instance cost for each subscriber), that expense will be allocated as COGS for the product.
Tagging items as COGS (Indirect)
You can also tag items that you want included as COGS, but are not directly involved with a specific product sale. For example, you might want to tag your hosting expense or your support employees as COGS. Do this by checking the "Add to COGS" checkbox in the CAC/COGS tab. These expenses will be allocated as COGS across all your products.
Partial COGS items
For both automatic and indirect items, you can include a partial amount of the expense in COGS calculations. For example, you might want 50% of your hosting expense to be allocated towards COGS, or you might have an employee who spends some portion of their role on support activities. To allocate a percentage of an expense or employee towards COGS just enter the percentage in the CAC/COGS tab.