# Profit and loss report - gross and net profit

> Read the Profit / Loss report - cost of goods sold, gross and net profit, tax - and break profit down by product, category or customer.

Source: https://docs.smartposhub.com/reports/profit-and-loss/  
Last updated: 2026-10-30  
Product: SmartPOS Hub (https://smartposhub.com)

The **Profit / Loss Report** tells you whether the business made money in a period, and where the profit came from. It compares your sales with what the goods cost you and with your expenses.

## Read the report

1. Open **Reports › Profit / Loss Report**.
2. Choose the **Business Location** and **Date Range** (for example this month).
3. Read the four cards:
   - **COGS** — cost of goods sold = opening stock + purchases − closing stock.
   - **Gross Profit** — sales minus COGS, with the margin %.
   - **Net Profit** — gross profit minus expenses and other costs, with %.
   - **Net Tax Liability** — tax collected on sales minus tax paid on purchases.
4. Open **How is this calculated?** for the exact formula.
5. Compare the two columns: **Costs & deductions** (opening stock, purchases, stock adjustments, expenses, shipping, discounts…) and **Revenue & income** (closing stock, sales, shipping charged, stock recovered…).

![Profit / Loss Report with COGS, gross profit, net profit and net tax liability cards and the costs and revenue statements](https://docs.smartposhub.com/_astro/profit-loss.DJ82quUY.png) (web app page: `/reports/profit-loss`)

## Profit by …

Below the statements, tabs break gross profit down **by products**, **categories**, **brands**, **locations**, **invoice**, **date**, **customer**, **day** and **service staff**. Use them to find your most and least profitable lines.

In the SmartPOS Business app, **Reports › Gross profit** shows the same breakdown by product, category, brand or customer:

![App Gross profit table by product with amounts](https://docs.smartposhub.com/_astro/app-profit-table.DnCEr4_Y.png)

## Getting correct numbers

- Every product needs a **purchase price** (cost). Products without cost show 100 % profit.
- Enter **opening stock** with its cost when you start ([Opening stock](https://docs.smartposhub.com/catalog/opening-stock/)).
- Record all **expenses** ([Expenses](https://docs.smartposhub.com/reports/expenses/)) and supplier purchases.
- Stock losses go in [stock adjustments](https://docs.smartposhub.com/inventory/stock-adjustments/), so they reduce profit.

- [Accounting & bookkeeping](https://docs.smartposhub.com/reports/bookkeeping/)
- [Sales reports](https://docs.smartposhub.com/reports/sales-reports/)

## Frequently asked questions

### What is the difference between gross profit and net profit?

Gross profit is sales minus the cost of the goods sold. Net profit is gross profit minus expenses and other costs such as stock adjustments and shipping you paid.

### Why is my profit wrong or too high?

Usually products have no purchase price or opening stock was not entered at cost. Fix the cost prices and opening stock; profit is calculated from them.

### Do credit sales count in profit?

Yes. Profit counts a sale on its date for its full amount, paid or not. Unpaid amounts show separately as dues.

### How do I see profit per product?

Use the profit tabs at the bottom of the report, such as by products, categories, brands, locations, invoice, date or customer.

### Can cashiers see this report?

Only if their role has the profit / loss report permission in User Management › Roles.

### Is this the same as the accounting profit and loss?

The numbers come from the same sales and purchases. Accounting › Reports › Profit & loss uses the double-entry ledger and is the one to give your accountant.