1Gross profit: sales minus the cost of what you sold
Each sale records the cost of the goods it contained, based on the average cost of the stock at that moment. Gross profit for a period is net sales minus that cost. If you sold Rs 200,000 of goods that cost you Rs 176,000, gross profit is Rs 24,000. Because it uses recorded purchase costs, accuracy depends on entering purchases properly.
Where Rs 100 of sales goes
Example month for a small grocery shop
2Net profit: what is left after the shop's costs
Net operating profit takes gross profit and subtracts expenses (rent, electricity, transport), salaries, stock losses from damaged or expired goods, and cash differences found when counting the drawer. A shop with Rs 24,000 gross profit, Rs 9,000 expenses, Rs 7,000 salaries, Rs 1,500 of damaged stock and a Rs 500 cash shortage has Rs 6,000 net profit.
| Line | Rs |
|---|---|
| Gross profit | 24,000 |
| Expenses | − 9,000 |
| Salaries | − 7,000 |
| Stock losses | − 1,500 |
| Cash difference | − 500 |
| Net profit | 6,000 |
Without a system
- Profit guessed from the drawer
- Expenses forgotten
- No idea which products pay
With Dukaan POS
- Gross and net profit reports
- Expenses and salaries subtracted
- Profit by product for the owner
3The reports available
Managers and owners can open reports for retail sales, wholesale sales, daily sales, expense summary, product sales, low stock, customer dues and supplier dues. Owners alone can open gross profit, net profit, stock value, salary payments and cash closing. Each report can be filtered by date range.
🧮 Profit and margin calculator
Margin is profit as a share of the selling price. Markup is profit as a share of cost.
4Downloading and sharing
Every report can be downloaded as a PDF or a CSV file. Share a PDF with a partner, or open the CSV in a spreadsheet for your accountant to work with.
5Reading profit week by week
A single day's profit is noisy. Look at the last 7 days each week and compare with the week before. If gross profit holds but net profit falls, costs have crept up; if gross profit falls, check prices and discounts. The product sales report points to the items behind the change.
6Why profit sometimes looks wrong
If the profit figure surprises you, the cause is nearly always missing data, not a faulty report. Check four things in order: a purchase with no cost entered makes goods look free and inflates gross profit; an expense you forgot to record inflates net profit; a customer return that was never recorded keeps sales too high; and a drawer that was never counted hides a cash gap. Fixing the entry fixes the report, and the history shows you where the gap came from.
★Get started in four steps
- Record costs on every purchaseCost accuracy drives gross profit.
- Record expenses and salariesEnter them as they happen so net profit is complete.
- Count cash and stockDifferences are subtracted in net profit.
- Review weeklyCompare the last 7 days with the week before.
!Good to know before you start
- Profit figures are only as accurate as the purchases, expenses and counts you record.
- The reports are not tax computations or filing statements.
- Profit figures are visible to the owner only.
- Saving and viewing need an internet connection.
?Questions about sales profit report software
How is profit calculated?
Gross profit is net sales minus the cost of the goods sold. Net operating profit subtracts expenses, salaries, stock losses and cash differences from gross profit.
Who can see profit?
Only the owner can see profit, stock value and salary reports.
Can I download reports?
Yes, as PDF or CSV.
Does profit use today's cost or the old cost?
It uses the average cost of the stock at the time of each sale.
Can I see profit by product?
The product sales report shows what sold. Profit is reported for the shop as a whole.
Try Dukaan POS free for 7 days
Every feature switched on. No card needed. Set up in about a minute, then add your own products.
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