When connecting your Shopify store to Katana, you can import all your products and stock levels from Shopify to Katana. Katana will import Product Names, Variants, SKUs and Sales Prices. 

However, Shopify does not have any information about the cost of those products. Thus, when you choose to import stock levels for products, then without defining the cost, products would appear with the Average Cost of 0 in your inventory in Katana. The easiest way to set the initial cost during the stock import is to calculate the cost as a percentage of Sales Price. The defined percentage will be applied to all imported products. Although it might not reflect the real cost of those products, it gives you a chance to easily define an approximate cost for all products at once.

If needed, you can adjust the cost for each individual product after the import is completed. A Stock Adjustment will be created in Katana for recording the stock levels and costs. To adjust costs for imported items, navigate to "Stock" -> "Stock Adjustments" in Katana, find the relevant Stock Adjustment and edit the "Cost per unit" column for products.

Note: The initial cost of products will define the Average Cost for those items in the "Inventory" list. However, the "Cost" column for a product in the "Items" screen will display 0 until you define a Product Recipe and/or Production Operations for the product. Any products made in Katana (by completing Manufacturing Orders) will be added to the stock at the manufacturing cost (cost of Product Recipe + Production Operations). 

Example 1

- Shopify store is using "Taxes included" setting.

- Price of a product in Shopify is USD 100 (taxes included).

- Default tax rate is 20% VAT.

- Katana imports product data and sets the taxes excluded Sales Price in Katana to USD 83.33 (formula: 100/(1+20%))

- Default cost as % of sales is 80%. This means that on average the user is selling products with a 20% sales margin.

- Initial stock level of the product is imported into Katana with a cost price of USD 66.66 (formula: 0.8 * 83.33).

Example 2

- Shopify store is using "Taxes excluded" setting.

- Price of a product in Shopify is USD 100 (taxes excluded).

- Katana imports product data and sets the taxes excluded Sales Price in Katana to USD 100.

- Default cost as % of sales is 60%. This means that on average the user is selling products with a 40% sales margin.

- Initial stock level of the product is imported into Katana with a cost price of USD 60 (formula: 0.6 * 100).