Accounting: what each term means and how each amount is computed

Interface description

• Gross revenue: Total incl. tax taken on the period sales (before returns). Formula: sum of sale amounts.
• Credit notes (excl. VAT): Total net amount refunded on customer returns of the period. Formula: sum of credit note lines (net amount refunded per item). This is deducted from gross net revenue to get net revenue excl. VAT.
• Net revenue excl. VAT: Real revenue after returns, EXCLUDING VAT. This is the income statement figure (GuV, HGB §275). Formula: net revenue excl. VAT = gross excl. VAT - credit notes excl. VAT. Do not confuse with net revenue incl. VAT (which includes collected VAT - not used in the P&L).
• Excl. tax (net): Sales amount without VAT. Formula: sum of sale net subtotals. It is the margin base.
• Incl. tax (gross): What the customer pays. Formula: incl. tax = excl. tax + VAT.
• COGS (cost of goods sold): Purchase cost of the items actually sold. Formula: sum of the cost (weighted average) of sold items.
• Gross margin: What you earn before expenses. Formula: gross margin = excl.tax - COGS (on the net, NEVER on the gross).
• Margin rate: Formula: margin rate = gross margin / net x 100 (in %).
• Collected VAT: VAT taken on your sales. Formula (per rate): sum (incl.tax - excl.tax) of sold items.
• Deductible VAT: VAT paid on your received purchases (recoverable). Formula (per rate): sum of VAT on received purchases.
• VAT due / payable / credit: VAT due = collected VAT - deductible VAT. If positive -> VAT payable = that amount. If negative -> VAT credit = minus that amount (carried forward).
• Treasury: inflows / outflows / balance: Inflows = sum of received payments by method (cash, card, transfer, Mobile Money). Outflows = sum of actually disbursed refunds (REFUNDED transactions) - strict cash basis. Balance = inflows - outflows. Note: outflows are real cash disbursements, not the TTC amount of accounting credit notes.
• Payment breakdown (cash / card / transfer / Mobile Money): In the treasury report, inflows are broken down by method: cash (CASH), bank card (CARD), bank transfer (TRANSFER) and Mobile Money (MOBILE, e.g. Flutterwave). Each method only appears if used in the period.
• Stock value at cost: What you paid for the stock. Formula: sum (unit cost x quantity), unit cost = weighted average if known, else purchase price.
• Stock value at sale price: What the stock would yield if sold. Formula: sum (sale price x quantity). It is NOT an accounting value.
• Weighted average unit cost: Average purchase cost of a product, recomputed at each costed entry (purchase reception). Basis of COGS and cost value.
• Why cost of goods sold and stock value can be 0: COGS (cost of goods sold) and the accounting "stock value" are computed AT PURCHASE COST (purchase price or weighted average cost). A product WITHOUT a purchase price nor weighted cost is therefore not valued at cost (it counts as 0). Consequence: if your products have no cost recorded (e.g. a catalog imported without purchase prices), the cost of goods sold AND the stock value at cost show 0 - this is NOT an error, it is by design. DO NOT CONFUSE this with the inventory value at SELLING PRICE (Stock management screen), which stays correct. To enable these figures: enter your products' purchase price (on the product sheet, or via a purchase reception which updates the weighted cost automatically).