Profit and loss explained

Open Reports › Profit / Loss Report, choose the date range (Filter by date) and location.

How profit is calculated

Gross profit = Total sales − Cost of goods sold

• Cost of goods sold (COGS) = opening stock + purchases − closing stock (all at purchase price).

Net profit = Gross profit − expenses, stock losses, discounts and other costs listed on the left side of the report.

Reading the report

• Left column (Costs & deductions): opening stock, purchases, stock adjustments, expenses, shipping, discounts, returns.
• Right column (Revenue & income): closing stock, sales, recovered amounts, purchase discounts.
• At the bottom: COGS, Gross Profit and Net Profit.

Below, the tabs break profit down by products, categories, brands, locations, invoice, date, customer and day. They answer "which items or branches actually make money?"

Important: Profit is only as accurate as your purchase prices. Products with a purchase price of 0 look like 100% profit. Check that every product has its real cost, and that opening stock was entered with unit cost.

Tip: The Today's profit button in the top bar shows the same calculation for today only.