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Limitations of Shopify Cost of Goods Sold

Bookkeep offers an automated daily sync feature that summarizes your Shopify cost of goods sold (COGS) and posts them to your accounting platform. This sync uses the cost values stored in Shopify for each product variant at the time of data retrieval.

However, there are important limitations to be aware of when relying solely on Shopify’s cost data:

  • Shopify only provides the current cost value for each variant. If you update the cost in Shopify, the old value is overwritten and no record of historical costs is retained.

  • Deleted or updated variants can cause mismatches. If a variant’s cost changes or is deleted before Bookkeep’s daily sync occurs, your cost of goods sold may no longer align with the actual costs at the time of sale.

  • Timing differences between when Shopify data changes and when Bookkeep syncs can lead to discrepancies, especially if costs fluctuate frequently or if multiple cost updates occur within the same day.

These limitations can result in inaccurate profit reporting if your cost structure changes over time.

Using Bookkeep’s COGS Solution for Accurate Cost Tracking​

If you require more precise control and historical tracking of your product costs, Bookkeep offers a COGS management feature that operates independently of Shopify’s cost data.

With the Bookkeep COGS solution, you can:

  • Manage your costs directly within Bookkeep. Set and update product or variant costs without relying on Shopify’s cost field.

  • Assign effective dates to cost changes. When a variant’s cost changes, you can specify the exact date the new cost should take effect—ensuring that Bookkeep applies the correct cost to each sale based on when it occurred.

  • Maintain a full cost history for every variant, allowing for accurate reporting even if Shopify’s costs are changed or variants are removed later.

  • Ensure consistent accounting across all connected platforms, since Bookkeep uses your stored cost data to calculate COGS for each daily summary entry.

This approach eliminates the dependency on Shopify’s single-cost model and provides a more accurate, auditable view of your cost of goods sold over time.

You can learn about Bookkeep's COGS solution here.

If you’re interested in setting up Bookkeep’s COGS management solution or need help transitioning from Shopify-managed costs, please contact us at support@bookkeep.com for guidance.