How to exclude refund transactions from COGS and Gross Profit section in the Sales report
Many businesses follow the practice, when there are any refunds of the sale then the respective amount should be deducted from the COGS and the Gross profit. Whereas, some businesses don't follow this practice. They don’t want to adjust the amount from the COGS and the Gross profit. Hence, we have given an option to choose whether you wish to adjust the amount from the COGS and the Gross profit report or not. You can change that setting by navigating to Store setup > General.
Please note, that the default option selected will be that the refund amount will not have been removed from the COGS and Gross profit. If you wish to exclude the refund amount from the COGS and Gross profit report then you will need to select the above setting.
Let us help you with an example for better understanding:
Let’s say the cost price of the ‘Product A’ is $200 and the retail price is $300. We have sold 2 quantities of ‘Product A’. So the COGS will be $400 ($200 * 2) and the Gross profit will be $200 ($100 * 2). Now, if you have refunded 1 quantity from it then the actual COGS will be $200 ($200 * 1) and the Gross profit will be $100 ($100 * 1).
So you can choose by using the above setting whether you wish to show the COGS as $200 and Gross profit as $100 after refund, or you wish to show it as it is i.e. the COGS as $400 and Gross profit as $200 after refund.
Related Articles
Sales Report
To make your data easier to understand, Hike breaks down all the sales activities into these key reports. All sales reports share the same fields below. Outlet As with any report, choose the outlet you wish to see from the drop-down list. You can ...Inventory Report
To make your data easier to understand, Hike breaks down all the activity to these key reports. All reports share the same fields below. Outlet As per all reports, choose the outlet you wish to see from the Outlet drop down menu. Filter by... Search ...Register Report
To make your data easier to understand, Hike breaks down all the activity to these key reports. All reports share the same fields below. Find outlet... As per all reports, choose the outlet you wish to see from the Find... drop down menu. Date range ...How To Exclude Gift Card Sales from Sales Reports
In Hike, you can choose to exclude gift card sales from the sales report. If it is activated, the orders of selling gift cards will be excluded from the sales amount in the sales summary report. Please note: the gift card sales will only be excluded ...Payments Report
To make your data easier to understand, Hike breaks down all the activity to these key reports. All reports share the same fields below. Outlet. As per all reports, choose the outlet you wish to see from the Find... drop down menu. Date range Click ...