Costs, Sells, Margins And Other Terms

These are some terms used when discussing items:

Information

Comment

GST/VAT

US Sales Tax

Cost

The cost we expect to pay for an item.

Costs can be entered into the system as ex-tax or inc-tax values.

There is no tax on purchases so the ex-tax and inc-tax cost is the same.

Sell Price

The sell price of the item. This is the sell price seen at the POS and is printed on tickets.

Sell price includes tax.

Sell price does not include tax. Tax is added at the end of the sale transaction.

Sales

The sales revenue earned from selling items.

Does not include tax.

Does not include tax.

COGS

The cost of goods sold.

Does not include tax.

Does not include tax.

Margin $

The dollars you make when you sell the item.

Sell Ex Tax - Cost Ex Tax

Sell - Cost

Margin %

The margin you make when you sell the item, expressed as a percentage.

Sell Ex Tax - Cost Ex Tax / Sell Ex Tax * 100

Sell - Cost/Sell * 100

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