Sellercloud automatically generates a Profit & Loss report for each individual order. This allows you to focus on the order’s bottom line and evaluate its income.
Access Profit & Loss on an Order
To get aggregated Profit and Loss data for an individual order, follow the steps below.
- Go to Orders > Manage Orders.
- Open the order for which you want the Profit & Loss report to display.
- Click Toolbox and select Profit & Loss.
Profit and Loss Data
To review and manage Profit and Loss values for an individual order, follow the steps below and click the respective article links for more detailed instructions.
- On the Profit and Loss panel, click the requested value to get details or update information.
- When changed, select ReCalculate Order Cost from the Actions menu to refresh the report. For more information, refer to Order Item Cost Regeneration.
- See the definition of each parameter in the P&L report according to the table below.
|Item Cost||Displays the items’ cost when products were purchased from vendors. This is managed by the Order Profit & Loss Calculated Using client setting. Click the value to update the item cost of each product*, if needed.
*The calculation can be based on the product’s Site Cost, Average Cost, or Last Cost. To get more information on Item Cost Calculation, go to Order Item Cost Calculation.
|Posting Fee||Displays the eBay listing fee amount.|
|Commission||Displays the dollar amount the channel receives from the sale proceeds. To change, click the value and enter the requested values in the Final Value Fee fields.|
|Transaction Fee||Reflects costs associated with processing payments (e.g. PayPal fee)|
|Shipping Cost||Displays the amount you paid to ship an item to a customer, regardless of whether a customer paid for shipping.
The calculation can be based on the info sent by a carrier, or the results of a Settlement report. For more information on Order Shipping Costs, go to Import Shipping Costs.
|Tax||Displays the Tax Amount paid on the order.|
|Promotion||The amount the company has spent on order (component products) promotion.|
|Rebates||Reflects Vendor Rebates. The Order Cost is reduced by rebates which are configured on the product’s detail page.|
|Order Cost||Displays the total amount across all the Order Costs.|
|Payments||The total amount a customer has paid for an order including Shipping.|
|ROI||This will only display on Shipped orders. Return On Investment is calculated by
(Profit / Item cost) * 100
|Estimated Profit||The expected profit value for the order
Refer to Order Profit Calculation – Cash vs Accrual for more information on building P&L reports based on the Accounting Basis selected.
* If the Client Setting is adjusted to use the Average Cost, but its value is zero, then Site Cost is used instead.
Order Profit Details
|SKU||The SKU of the product added to an order.|
|Qty Sold||The number of units of a particular product added to an order.|
|Unit Cost||Cost of a single product unit in the order (defined upon it was purchased).|
|Unit Price||The customer’s price for a single product unit.|
|Product Cost||The current cost of a product.|
|Site Cost||Cost of all units in the order (defined when each unit was purchased).|
|Selling Price||Current price of a product.|
|Refund||Total Refund Amount by order item.|
|Commission||The amount the channel receives from the sale of the ordered item.|
|Trans. Fee||Payment processing fee.|
|Final Cost||Resulting amount spent on each item in the order.|
|Profit||Profit for an order by a certain item (dollar value).|
|Profit, %||Profit for an order by a certain item (percentage-value).|
Related Client Settings
To access these settings, go to Settings > Client Settings > General Client Settings > Advanced.
|Order Profit & Loss Calculated Using||Use this parameter to determine which item cost to pull into the Profit & Loss report.|
|Credit Card Transaction Fee||Allows you to include a set percentage from a sale in the transaction costs.|
|Enable adjustments in P&L
||Allows you to manually add adjustments to the order.|
P & L calculations
All costs and revenues are calculated to determine Cash/Accrual Profit and Cash/Accrual Profit Margin:
- Cash Profit calculation is based on the Payment amount of an order: (Payment – Refunds) – (Item Cost + Total Fees) + Adjustments
- Accrual Profit calculation is based on the Grand Total amount of an order: Sum(Grand Total) – (Item Cost + Total Fees) + Adjustments
Note: Sum(Grand Total) = Order Grand Total – Return Grand Total.
- Cash Profit Margin calculation: ((Payments – Refunds) – (Order Cost Total + Adjustments)) / (Payments – Refunds) * 100.
- Accrual Profit Margin calculation: (Sum(Grand Total) – (Order Cost Total + Adjustments)) / Sum(Grand Total) * 100.
Note: Sum(Grand Total) = Order Grand Total – Return Grand Total.
Introducing the P&L tab
Below are various costs and revenues used to calculate profit and loss, as shown on an order’s P&L tab:
- Item Cost – Cost of purchasing the item from the vendor. Sellercloud saves item cost with the order details to show it at the time of the order; clicking item cost opens an editing window for updating.
- Item Cost is based on A) The item cost on the Order Date, and B) The method used to calculate cost, which is determined by the Client Setting Order Profit & Loss Calculated Using (Average Cost, Site Cost, or Last Cost). Item cost is calculated either as a fixed cost (Site Cost or PO Last Cost) or with an average (Simple or Weighted). Watch how SellerCloud calculates item cost.
- You can configure item cost to include shipping or third-party costs incurred for you to receive the item. Vendor discounts can also be factored into item cost.
- If the Client Setting used is Average Cost, but Average Cost is zero, then Site Cost is used on the order’s P&L tab. Note that the chosen Client Setting is used in Sellercloud’s P&L reports.
- Posting Fee – eBay listing fee (earlier Sellercloud versions applied this to the first order for the item) or a Reverb bump fee.
- Commission – Dollar amount the channel receives from the proceeds of the sale. This may be referred to as the Final Value Fee.
- Transaction Fee – Costs associated with processing payment, such as a PayPal fee. The Client Setting Credit Card Transaction Fee lets you set a percentage that is calculated from the sales and included in transaction costs.
- Shipping Cost – Amount you paid to ship the item to the customer, regardless of whether the customer paid for shipping.
- Tax – Amount the buyer paid for tax on the order.
- Rebates – Vendor rebates that are credited to the seller when the item is sold. This value reduces the cost of the order. You can configure rebates at the product level by clicking Rebates on a product’s detail page.
- Dropship Fees – Vendor dropship fee. Only appears in dropship orders.
- Co-Op Fees – Allowance fee from select channels.
- Order Cost – Sum total of all costs associated with the order.
- Payments – Total amount the customer paid, including shipping.
- Adjustments – Adjustments are made to an order in 2 ways:
- By automatic import – The Adjustments field will appear in orders by default, and is editable. You can click the amount to revise it, and you can manually add more adjustments if desired. Show me that P&L Adjustments window. No setting is required to enable these actions.
- By manual entry – If an adjustment is not auto-imported into an order, the Adjustments field will only appear if you select Enable adjustments in P&L in the Client Settings. Once enabled, the Adjustments field will then appear with a zero balance: Click the $0.00 (show me) to add adjustment(s) manually to the order. Show me that P&L Adjustments window.
If you want the flexibility of both options, select the Enable adjustments in P&L setting.A third option exists to bulk-upload adjustments to orders, and you can download a sample Excel spreadsheet with the required columns. Show me where. Bulk-uploading adjustments behaves like the automatic import.
- Profit – Order profit totaled as a dollar amount.
Introducing the Order Profit Detail
Clicking the P&L tab’s Show Profit & Loss icon opens the Order Profit Detail:
The first 2 columns are an item’s properties and the next 6 are 3 pairs of two columns.
Note: Columns with Unit refer to a value of one unit of the SKU, and columns with Site refer to the value of all units of that SKU in the order.
- Unit Cost / Site Cost – Cost of the item in the order (values are the cost of the item at the time of purchase)
- Product Unit Cost / Product Site Cost – Current cost of the item
- Selling Unit Price / Selling Site Price – Selling price of the item
- The far right of the grid shows the order’s profit as dollars and percentage.
- When an item is sold in an international marketplace, the Profit and Loss shows all costs and payments in the same currency used for the purchase and in the currency configured in the default company; in this case, U.S. dollars. Sellercloud checks currency conversion rate daily and saves the rate at the time of the order with the order details page.
- If an order was refunded, an additional column appears with the refunded amount.
- If an item was returned via RMA, item cost is removed from the P&L tab. Likewise, when an FBA order is returned to FBA, item cost is removed from the order.
- Because a replacement order sends a new item to the customer, Sellercloud calculates its P&L loss separately from the original order. If no payment is made on the replacement order, the P&L tab only shows the order costs.
- Sellercloud’s Reports module offers numerous P&L reports, including the Product Profit report showing profits for every order generated by sales of this product. Check out the introductory Reports Overview video.
Updating profit and loss through updated item cost
When adjusting or updating the cost on an item, use the following procedures to update P&L for related orders. This can be done in a single order or in bulk.
Updating a single order
- From the order’s Action menu > ReCalculate Order Cost > Go.
- After seeing the message “Order Cost re-calculated successfully,” click the P&L tab’s Re-generate P&L icon and await the message “P&L re-generated successfully.”
Updating orders in bulk
- From the Manage Orders page, search for orders with a specific SKU or SKUs.
- Enable the Select all pages option > Action menu > Re-Calculate Order Cost > Go. This creates a queued job.
- When completed, on that same Manage Orders page > Action menu > Generate P&L > Go. This creates a queued job to update the orders.