This guide explains how to compare the Cost of Goods Sold (COGS) in Xero and LightSpeed. Comparing COGS in both systems helps ensure your financial records are accurate.

Why is this important?

Making sure COGS matches in Xero and LightSpeed is a key part of keeping your accounts correct. If these numbers don't match, it can lead to errors in your financial reports.

Procedure

Follow these steps to compare the COGS amounts:

1. Get the COGS figure from Xero
   1. In Xero, go to Accounting > Profit and Loss.
   2. Set the date range to the period you want to check.
   3. Click Update.
2. Get the COGS figure from LightSpeed
   1. In LightSpeed, go to Reporting > Sales Reports.
   2. Make sure the Summary report is open.
   3. Set the report options:
      • Report type: Register
      • Measure: Cost of goods sold
      • Date Range: Use the same dates as in Xero
   4. Click More Filters
   5. Turn Include gift card sales on.
   6. Click Search.
3. Compare the numbers

   1. Look at the total COGS from the Xero Profit and Loss report.

   2. Compare it to the total COGS from the LightSpeed Sales Report.

Troubleshooting

If the COGS in Xero and LightSpeed are different, here's what to do:

1. Find the problem period
   • Run the LightSpeed Sales Report for each quarter or month. This will help you find the exact time frame where the error happened.
2. Check these things for that period:
   • Register Closures: Make sure all daily register closures have synced correctly to Xero. Look for errors in the Register closure report.
   • Voided Sales: Check that any sales you've cancelled (voided) in Vital or LightSpeed are also canceled in the other systems and in Xero.
   • Direct entries in Xero: Ensure no COGS transactions were entered directly into Xero, as this can cause differences.

Frequently Asked Questions

Why don't COGS always match right away?

LightSpeed records COGS when you close the register, not at the time of each sale. If registers aren't closed daily, this can cause delays and mismatches.  For more information, see How COGS Posting Works from LightSpeed to Xero.

Where do I find the Register Closure Reports?

In LightSpeed, go to the "Reporting" section and look for "Register Closure" reports. See Validating a Single Register Closure COGS Figure for instructions on validating the posting to Xero.

What's a voided sale?

A voided sale is a transaction that was canceled after it was initially recorded.

Next Steps

• If you often have trouble with COGS discrepancies, consider running the reports weekly instead of monthly.
• If you need more help, please contact Evolution Support.