From an Alibaba order to FBA sales and cost of goods sold
The whole path of a batch of stock: the purchase order from the Alibaba receipt, the freight paid to a forwarder, the delivery's landed cost, and the cost of the units that sold.
The example
Caution: The numbers here are made up to show the steps, in a company kept in US dollars.
500 mugs from an Alibaba supplier at USD 2.00 each (USD 1,000.00), shipped by a forwarder for USD 250.00, sent to Amazon's warehouse. In October, 120 sell.
The steps
- 1
The order from the receipt
Inventory → Purchase orders → New → Fill in from an Alibaba receipt. Check the supplier, the mug line and the total, then Save draft and Mark as sent.
- 2
Pay the supplier
Payments → Record a payment, or link the bank line with Already in my books.
- 3
Record the delivery
Record a delivery for the 500 when they arrive at Amazon.
- 4
Pay the forwarder for that delivery
Record a payment to the forwarder, for the delivery. It goes on the landed cost as freight.
- 5
Check the landed cost
The lot shows 500 mugs at USD 2.50 each: 2.00 from the supplier and 0.50 of freight.
- 6
Post October's cost of goods sold
Inventory → Cost of goods sold → Post for Amazon: 120 × 2.50 = USD 300.00.
What you should see
What you should see
- Stock lots: 380 of 500 left
- Channel profit for October shows cost of goods sold USD 300.00
- Inventory → Prices shows a cost of 2.50 on the mug's listing (5.00 on a 2-pack)
- Stock compares your 380 with what Amazon holds
Read next
Purchase orders and deliveries
Draft an order to your supplier, send it, and record each delivery as it arrives. Fill one in from an Alibaba.com receipt, and type the cost of one, the line total or the order total.
Read the guidePaying suppliers, and purchases in your books
Record what you pay against each order, with an optional payment plan. Switch on purchases in the books and payments wait on Supplier deposits until the stock arrives.
Read the guideLanded cost and FIFO stock lots
What a unit really cost you: the supplier's price plus its share of freight, duty, brokerage and prep. Each delivery becomes stock lots, and sales use the oldest first.
Read the guideCost of goods sold, month by month
Add your opening stock once, then post each month's cost of goods sold per marketplace at FIFO cost. Returns come back into stock; losses are written off.
Read the guide