Although often used synonymously, the term Cost of goods sold and Cost of materials different items in the income statement. The Cost of goods sold (also "cost of purchased goods") is a term used in the retail industry and refers to the value of resold merchandise at cost. A trading company buys finished products and resells them without significant processing. The Cost of materials is the corresponding term in the manufacturing industry. It comprises the value of raw materials, consumables and supplies used in the production process to manufacture the finished products. Both items represent the largest single expense in their respective industries and are the direct counterpart to sales revenue when calculating gross profit. Accurate recording is crucial for cost control and is supported by the Advantages of integrated ERP software with warehouse management and production planning. A detailed analysis of these cost blocks is made possible by the controlling modules of the Versino Financial Suite.
Two free webinars in July: Experience the Versino Financial Suite live
E-Invoicing 2026: What is changing now for SMEs and SAP B1 users
Netting in SAP Business One: What makes the Versino Financial Suite different
Trial Balance in SAP Business One: What the Versino Financial Suite does differently – and why tax advisors notice
Versino Financial Suite Version 05.2026: What's Changed
