Financials & Reports
Profit & Loss Reporting
5 min read
•Updated last weekTrue Profitability
The Formula
Breakdown
1Sales Revenue: Total value of invoices.
2COGS: The purchase cost of the items you sold.
*Example*: You sold a battery for 15,000. You bought it for 12,000.
*Gross Profit*: 3,000.
3Expenses: Rent, Bills, Salaries, Tea, Food.
*Example*: Total expenses today = 1,000.
4Net Profit: 3,000 - 1,000 = 2,000.
True Profitability
Many dealers confuse "Cash in hand" with "Profit". BatteryWala calculates accurate Accounting Profit.
The Formula
Net Profit = (Sales Revenue - Cost of Goods Sold) - Expenses
Breakdown
1Sales Revenue: Total value of invoices.
2COGS: The purchase cost of the items you sold.
*Example*: You sold a battery for 15,000. You bought it for 12,000.
*Gross Profit*: 3,000.
3Expenses: Rent, Bills, Salaries, Tea, Food.
*Example*: Total expenses today = 1,000.
4Net Profit: 3,000 - 1,000 = 2,000.
info
Profit is calculated based on the purchase price at the time of sale. Changing the cost price later will not affect historical profit reports.