Stock & Shop

Expenses & Profit

Record the costs that aren't stock, and read a real profit figure for this month, this quarter, the financial year or all time: gross and net profit, margin by item, stock valuation and the day book.

On this page

InvoiceKaro calculates gross and net profit from recorded sales, stock costs, returns and expenses. The figures depend on those records being complete and accurate; they are not your bank balance or a complete set of accounts.

Record an expense

1Open Inventory → Expenses and click Record an expense.
2Pick a Category: Rent, Salaries, Utilities, Transport, Supplies, Marketing, Fees & charges, Repairs, Taxes or Other.
3Enter the Amount (₹, before GST) and any GST paid (₹).
4Fill in What was it for, the Date and, optionally, the Bill / reference no.
5Click Save expense.

Tip

Have the bill on paper? Use Scan Bill and choose Expense after the scan. The form opens with the amount, GST, date and reference filled in.

Stock you buy is not an expense

Buying stock moves money into inventory; it becomes a cost when the stock sells. Recording a purchase bill as an expense would count it twice and make a restocking month look like a loss.

Note

InvoiceKaro records GST paid separately and excludes it from the expense amount used in its profit report. This calculation does not establish whether that GST is recoverable. Review any non-recoverable tax and accounting adjustments with your accountant.

The Expenses tab shows what you've Spent, what you spent This month and the GST paid, a list of every entry and a By category breakdown. Delete removes an entry, and it stops counting against profit.

Expenses: every running cost with its GST, and the share spent by category. Earlier layout shown; use the current navigation steps in this guide.View full size

The Reports tab

Open Inventory → Reports and pick a period: This month, This quarter, FY to date (the financial year from 1 April) or All time. Only the owner sees this tab.

Profit & loss

Line	What it is
Revenue	What you billed, minus anything refunded. GST collected isn't yours, so it isn't counted.
Cost of goods sold	What the items you sold actually cost you, recorded at the moment each sale was issued.
Gross profit	Revenue minus cost of goods sold: the money you made on trade, with its margin %.
Expenses	Rent, salaries and everything else that isn't stock.
Net profit	Gross profit minus the expenses recorded for the period.

Under the figures, a note tells you how much of what you spent on purchase bills in the period is sitting in stock rather than in this profit.

The other reports

Stock valuationAs of today: items tracked, units on hand, and what they're worth at average cost. Negative counts are left out rather than subtracted.

Margin by itemFor each item: units sold, revenue in, cost out and margin %.

Day bookPick a date to see that day's sales, purchases and payments received, and every stock movement behind them.

Note

Invoices with no catalogue-linked lines have no cost behind them, so they're left out of the per-item margin figures rather than shown as 100% profit.

The Stock tab gives the owner a quick version too: this month's gross profit, stock value, purchases, expenses and recorded input GST, plus a month at a glance card. Unsynced offline sales appear only after syncing; refresh the reports before reviewing them.

Who can see what

Money you charge is ordinary business data. Money you paid is not. Cost price, average cost, cost of goods sold, margin, stock valuation and the whole profit report are owner-only.

Role	Stock counts	Record bills	Expenses	Costs & profit
Owner	Yes	Yes	Yes	Yes
Admin (bookkeeper)	Yes	Yes	Yes	No
Manager	Yes	Yes	No	No
Staff	View only	Yes	No	No
Viewer	View only	No	No	No

Tip

So a staff member can record what physically arrived, and a bookkeeper can enter the rent, without either of them seeing your margins. Correcting a count with Adjust stays with the owner. See Team.

Need help with these steps? Contact support