Understanding COGS (again)

[lennys26]

Hello Community.

I am again stumped by my COGS report and am hoping I can be pointed in the right direction.

 

• This item cost is correct at €2.43 (pre-tax)
• I sell the item for €3.75 inclusive of 10% tax, so €3.38 (rounded) without tax.

With only one item sold, why is the "Revenue" and "Avg. Revenue" €3.41 and not 3.38?

Note: This item has been in-stock, with no price or inventory changes. 

[TheRealChipA · Accepted solution]

@lennys26 Because you have calculated the wrong pre-tax amount.

€3.75 / 1.10 = €3.4090909, which rounded is €3.41, not €3.38

[lennys26]

@TheRealChipA Once again, you have pointed out my mistake.

My calculation of 3.75 - 10%, which equals 3.38, is NOT the same as 3.75 / 1.10, which does indeed equal 3.409.....

A - 10% = B does not mean that B + 10% = A. This is evident but was not immediately obvious.

Thanks again!

[TheRealChipA]

@lennys26 It’s a very common mistake, trust me.  I’m happy to help.