How does Jogan calculate profit?
Profit on a sale line is the selling price minus the item's weighted-average cost at the moment of sale, times the quantity. Reports sum this over any date range and show revenue, cost of goods sold, gross profit and margin, in total and per product.
Every sale line in Jogan stores two prices: the unit price you sold at and the cost at sale, which is the item's weighted-average cost at that moment. Profit is the difference, times the quantity. Nothing is estimated afterwards; the cost is frozen on the line when the sale is recorded.
The formula
A sale-level discount reduces the total you charged, and the Profit report accounts for it.
Where the cost comes from
- For something you buy and resell, cost at sale is the running average of what you paid. See How Jogan works out cost.
- For something you make, cost at sale is the finished item's average, which production set from the recipe's material cost. The finished good's cost therefore already contains today's ingredient prices.
Where to see it
- Dashboard: Today's sales and Today's profit.
- Sale receipt: each line shows "Cost on this sale" next to the unit price, so you can see the margin on one invoice. See How to view and print a receipt.
- Reports → Profit: revenue, cost of goods sold, gross profit and margin for a date range, then a breakdown by item so you can see which products carry the best margin. See How to read your reports.
What profit does not include
Jogan reports gross profit: revenue minus the cost of the goods sold. Rent, wages, electricity, delivery and other overheads are not in Jogan, so net profit is a step you do outside it.
Common surprises
- A cheaper product with a better margin. A samosa that sells for less than a cake can still earn a higher percentage. The By-item table in the Profit report makes that visible.
- Margins shrinking over time. Usually an ingredient's average cost has risen. The Recipes page shows current material cost per unit, so you can reprice.
- Profit looks too high. Check that purchases were logged with their real unit cost. A blank cost keeps the old average and understates cost of goods sold.
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