This glossary defines every line on the Profit & Loss statement. Use Ctrl+F (Cmd+F on Mac) to jump to a term. For the full calculation rules, see How Shopshot calculates profit.
Line | Definition | Formula | Where it comes from |
Gross Sales | Product sales before discounts and returns | Sum of line-item prices | Shopify Orders |
Shipping Charged | What you charged customers for shipping | Sum of shipping charged | Shopify Orders |
Taxes | Tax collected from customers | Sum of taxes collected | Shopify Orders |
Discounts | Discounts applied to orders | Sum of discounts | Shopify Orders |
Returns | Sales portion of refunds, on the processed date | Sum of returned sales | Shopify Orders |
Total Sales | Reconciles to Shopify's Total Sales | Gross Sales − Discounts − Returns + Taxes + Shipping Charged | Shopify Orders |
Net Sales | Sales excluding tax and shipping charged | Total Sales − Taxes − Shipping Charged | Derived |
COGS | Cost of the products sold | Unit cost × units sold, snapshotted at order time | Your COGS setup |
Shipping cost | What you paid carriers to fulfill orders | Resolved per order by the shipping waterfall | Your Shipping Costs setup |
Transaction fees | Payment gateway fees | Percent × order + fixed fee, per gateway | Your Transaction Fees setup |
Fulfillment | Handling cost per order | perOrderCost + (perUnitCost × units) | Your Fulfillment setup |
Order-level Costs | The order costs grouped | COGS + Shipping cost + Transaction fees + Fulfillment | Derived |
Gross Profit | Profit after direct order costs | Net Sales − Order-level Costs | Derived |
Gross Margin | Gross Profit as a share of Net Sales | Gross Profit ÷ Net Sales | Derived |
Marketing Costs | Ad spend and acquisition cost | Ad spend + attributed CAC | Connected ad platforms |
Contribution Margin | Profit after marketing | Gross Profit − Marketing Costs | Derived |
Operating Expenses | Overhead, daily-allocated | Sum of daily-allocated expenses in the range | Your Operating Expenses |
Net Profit | What you actually keep | Contribution Margin − Operating Expenses | Derived |
Net Margin | Net Profit as a share of Net Sales | Net Profit ÷ Net Sales | Derived |
Notes
Taxes are never part of the profit basis. They appear only where cash reconciles.
COGS is snapshotted, so editing a cost does not restate closed periods.
Shipping cost is what you paid, not what you charged. What you charged is Shipping Charged.
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