Profit Reports

Profit is the number owners check and the number they most often dispute. This page sets out exactly what Kassly subtracts from what, so a margin that looks too low can be traced instead of guessed at.

Owners and Managers only. Cost, margin and profit are hidden from Cashiers and from custom roles everywhere they appear — on reports, on the dashboard, and inside insight panels.

Needs the Business Reports add-on (₱400 per branch each month), or any bundle that includes it, for Profit & Loss and Product Margins. Food Cost Analysis needs Inventory Pro (₱500 per branch each month) instead. The profit tiles on the Dashboard are visible but blurred on the Free plan.

The cost basis

Every profit figure in Kassly uses the cost recorded on the line at the moment of sale. Not today's cost price, not an average.

That single choice has consequences worth stating plainly:

• Changing a product's cost does not rewrite history. Put your supplier price up today and last month's margin does not move. This is the correct behaviour and it is what lets you compare months.
• A product sold before a cost was ever entered counts as costing nothing, so it shows a 100% margin and inflates your profit. This is the single most common cause of "my margin looks impossible". Fix it by setting cost prices — see Product pricing — and the figures will be right from that point forward, not retrospectively.
• Recipe-costed items carry the cost of their ingredients as at the sale. See Ingredients and recipes.

Stock valuation uses a different basis again. Inventory reports has the comparison table.

What is taken out of revenue

Kassly never treats these two as your money, so they are removed before any margin is computed:

• Output VAT. VAT you collect is owed to the BIR. Margining against a VAT-inclusive total would overstate profit by the whole 12%. A non-VAT store has nothing to remove, and its VAT line reads ₱0 throughout. See Tax configuration.
• Service charge. Under RA 11360 a service charge belongs to your staff. It is shown on the statement for information and it is never counted as revenue.

Senior-citizen and PWD sales already store a VAT-free, pre-discount figure, so the same arithmetic holds for them without a special case. See Discounts.

Profit & Loss

Reports → Profit & Loss. It defaults to month-to-date, with a plain From and To date for any other range. Cost of Goods Sold opens the items behind it (product, quantity sold, cost), and so does Total Expenses.

Revenue

Line	What it is
Gross Revenue	Sales before discounts, with VAT stripped out
Less: Discounts	Everything given away, including statutory discounts
Less: Returns	Refunds during the period, net of the VAT reversed with them. Only shown when there are any
Service charge	Shown for information, never counted. Only shown when there is any
Net Revenue	Gross Revenue − discounts − returns

Voids have no line, because a voided sale is not a sale: it drops out of the day it was made, whichever period you void it in. If you void last month's sale today, last month's statement goes down and this month's does not. When that has happened, a note under Net Revenue says how much of this period's voids belonged to earlier days.

Cost and gross profit

Cost of goods sold is the per-line cost at sale, summed. Returns that were restocked give back the cost of the units that came back on the shelf, and landed costs on goods already sold are added. A voided sale needs no reversal: its cost was never counted.

Gross profit is Net revenue − Cost of goods sold. Gross margin is that as a percentage of net revenue.

Below gross profit

Line	What it is
Commission Payouts	Service commissions and tips (passed through to staff) accrued in the period. Only shown when there are any
Operating expenses	Approved expenses, with a breakdown by category and an itemised list
Supplier credits written off	Supplier credits you gave up on. Only shown when there are any
Stock written off or found	Removals and count differences, one line per account (spoilage, damage, samples, shrinkage), with extra stock found shown as a positive line. Only shown when there are any, and only for adjustments made after this update reached your store
Net profit	Gross profit − operating expenses − commissions and tips − supplier credits written off − net stock written off
Net margin	Net profit as a percentage of net revenue

Two rules on expenses:

• Only approved expenses count. An expense sitting in the approvals queue is invisible here. See Approvals and promotions.
• Expenses attached to a purchase order are excluded, because the cost of those goods already reaches you through cost of goods sold. Counting them again would charge you twice for the same stock. See Receiving purchase orders.

Expenses are windowed on the expense date you entered, not on the moment the record was created. Backdating an expense moves it into the right period.

Because margins divide by net revenue, heavy discounting shrinks the denominator as well as the numerator. A store giving 20% away sees its margin percentage fall by more than the peso profit does.

This statement is built to tie to your books. If it does not reconcile against Financial statements, the difference is almost always an unapproved expense or a stock movement with no cost on it.

Product Margins

Reports → Product Margins. One row per product: units, revenue, cost, profit and margin percentage, with a comparison against the prior period and a Profit movers card. With a comparison on, each row's Δ Profit compares its profit with the same product's in the prior period; a product that sold nothing then reads New.

Two limits to know before you rely on it:

It lists the top 50 products by revenue, and nothing else. There is no "show all". A long tail of low-revenue products with terrible margins will not appear here at all. For a complete picture over a period, export the Sales Summary category breakdown or the Food Cost Analysis instead.

Its revenue is the line total as rung up, VAT included. Unlike Profit & Loss, this page does not strip output VAT out of a product's revenue before computing its margin. For a VAT-registered store that makes every margin on this page read higher — by roughly eleven points on a fully vatable item — than the same product's real contribution to Profit & Loss. Use this page to rank products against each other, which it does correctly, and use Profit & Loss for the actual margin. A non-VAT store is unaffected and the two agree.

A product with no recorded cost shows 100% margin here, for the reason given under the cost basis above.

The dashboard profit tiles

The four tiles at the top of the Dashboard are month-to-date and are computed the same way as Profit & Loss, with one difference: they are simpler. Net Profit there is net sales (after returns) less cost of goods sold less approved expenses less net stock written off. It leaves out commissions, tips and supplier credits written off, which the full statement subtracts.

So the dashboard is the quick read and Profit & Loss is the answer. Where they differ, the statement is right.

Category and food-cost profit

Two more places profit appears:

• The category breakdown on Sales reports shows cost and gross profit per category for the period, using the same cost-at-sale basis.
• Food Cost Analysis works the other way round — it starts from a recipe and asks what percentage of the selling price the ingredients cost. It needs Inventory Pro and is covered in Inventory reports.

Getting a copy

Profit & Loss has an Export as PDF button. Product Margins has no export at all. See Exporting reports for the full matrix.