What is the primary component that affects COGS during the sales process?

The primary component that affects Cost of Goods Sold (COGS) during the sales process is standalone invoices. When a sale occurs, an invoice is generated that reflects the revenue from the sale. This invoice not only records the sale but also triggers inventory management processes that calculate the COGS associated with the items sold.

When the invoice is created, it indicates that inventory has been reduced and that costs are now recognized in the financials, which directly impacts COGS. This is crucial for financial reporting, as COGS is an essential metric used to determine gross profit. By capturing the cost associated with sold inventory, standalone invoices ensure that the financial statements accurately reflect the business's profitability.

In contrast, customer payments, return authorizations, and deposit transactions do not directly impact COGS in the same immediate way. Customer payments relate to cash flow, return authorizations deal with returns of merchandise potentially affecting revenue and inventory but not COGS directly at the point of sale, and deposit transactions pertain to advance payments but do not directly affect COGS either. Thus, standalone invoices are the key to recognizing COGS in the sales process.