All orders in Veeqo are exported into Xero, when this happens we create a journal within Xero for the COGS (Cost of Goods Sold). This journal decreases (credits) your stock on hand account and increases (debits) cost of goods sold COGS account.
This is done so that when you look your profit and loss report in Xero, you will see an accurate gross profit for each day. It also makes sure that the stock showing on your balance sheet is accurate.
How does Veeqo calculate cost price for a product?
We use the cost price you entered in the product details. If you send purchase orders in Veeqo, then we will record the price you pay every time and work out the average cost price, so even if you buy the item had different prices, it will be accurate.
These journals are posted as in DRAFT status, so you will need to log into Xero to confirm they are correct. You can view them in Xero by ADVISOR > MANUAL JOURNALS, if you can not see this menu option, then please read this to enable it for your user.
How does Veeqo know which is my stock account and COGS account?
When you setup your Veeqo and Xero integration, you can choose which accounts in Xero are your stock and COGS accounts, we pull these from your Xero account.