Home› Community Chat› Wave Discussion › Using Wave

How to Get Net Profit

EdaRoslyEdaRosly Member Posts: 1

Hi, I'm new and confused. I'm an online seller and I don't have inventory. I created invoices and recorded payment and I got the Profit & Loss report. However I don't know how to get the actual net profit as the total payment recorded is not subtracted with COGS. As far as I know COGS is when you have inventory but I don't as my customer buys from me and I make order to my supplier and they ship directly to my customer.

My question here, is COGS relevant? If yes, how to make use of them. I know how to create the account but to record transaction is confusing me. If no, any other way to categorize my expenses (payments made to my suppliers for the actual item price + shipping cost) so that my income will be deducted from it to get net profit?

Thank you so much.

in Using Wave

Comments

  • CalliePCallieP Member Posts: 439 admin

    Hi there @EdaRosly , welcome to Wave! Getting started with accounting can definitely be a confusing endeavour, but we're happy to help any way we can!

    In this case, if you are paying for the items you're selling, you will need to record a COGS expense in order to get an accurate net profit. You can record a COGS expense by heading to Accounting > Transactions > Add Expense and categorize it to a COGS account!

Sign In or Register to comment.