# 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.

Category: Worked examples · Web page: https://bookalyze.com/guides/alibaba-to-fba

## 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

## Related guides

- [Purchase orders and deliveries](https://bookalyze.com/guides/purchase-orders.md): 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.
- [Paying suppliers, and purchases in your books](https://bookalyze.com/guides/supplier-payments.md): 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.
- [Landed cost and FIFO stock lots](https://bookalyze.com/guides/landed-cost-and-lots.md): 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.
- [Cost of goods sold, month by month](https://bookalyze.com/guides/cost-of-goods-sold.md): 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.