MENU
    Gross Sales vs Net Sales
    • 04 Jun 2024
    • 1 Minute to read
    • Dark
    • PDF

    Gross Sales vs Net Sales

    • Dark
    • PDF

    Article summary

    Restaurant365′s Chart of Accounts comes with pre-defined ‘GL Types’ specific to the restaurant industry. They are:

    1.  Current Asset

    2.  Fixed Asset

    3. Other Asset

    4.  Current Liability

    5.  Long Term Liability

    6.  Equity

    7.  Sales

    8.  COGS or Prime Cost

    9.  Labor Cost

    10.  Operating Expense

    11.  Non Controllable Expense

    12.  Corporate Overhead & Other

    13.  Income Tax

    Click here for more information on GL Types.

    It is required that each of your GL Accounts be assigned to one of these GL Types. Restaurant365′s out-of-the-box financial reports group your accounts by GL Type first, then by Parent Account, then by Account Number.

    Restaurant365′s non-Profit & Loss reports (such as the Flash Report, Sales v. Labor Report) also leverage the GL Account attribute of GL Type when determining the value to display. To view your previously ran financial reports, click 'GL Types' under the 'Administration' tab in the Accounting module.


    Reviewing Reports

    On all the non-Profit & Loss reports, Restaurant365 labels the summation of all GL Accounts assigned to the GL Type of ‘Sales’ as “Net Sales”

    An example of this is seen below:

    The system assumes that you have assigned not only your revenue accounts to the GL Type of ‘Sales’ but that you have also assigned your Discounts & Comps account(s) to the GL Type of ‘Sales’ as well. Thus, on all the non-Profit & Loss reports, it is summing these together to display your Net Sales. The system uses this number to calculate other %’s and values.

    Although the wording in the non-Profit & Loss reports is hard coded to read ‘Net Sales’, there are many organizations that will want that number to be their actual Gross Sales. Those organizations should classify their Discount & Comps account(s) to the GL Type of something other than ‘Sales’. By doing so, the number displayed on non-Profit & Loss reports will actually be their Gross Sales even though it will still display as ‘Net Sales’ on the report.

    Restaurant365 Report Roles can be configured to restrict a User's view of the Profit & Loss reports to only controllable dollars. The 'P&L Cutoff' setting for Report Roles can be set to limit these reports to only include data for GL Accounts assigned to the GL Types of Sales, Prime Costs, and Operating Expense.


    Was this article helpful?