Read your shop profit and loss report in this order: sales, cost of goods sold, expenses, then the profit left over. Check the period and any missing-cost entries before trusting the final figure. This guide explains Yojika’s Simple P&L, with a small-shop example and the checks that make the report useful.
Shop profit and loss: what each line means
Cost of goods sold, often shortened to COGS, means the cost attached to the goods you sold. It is different from the total stock you bought during the month: some purchases may still be on the shelf.
In Yojika, open Reports → Profitability → Simple P&L. Read the rows like this:
| Report line | What to look for |
|---|---|
| Net sales (taxable) | Sales value before GST for lines with known costs, after recorded sales returns |
| COGS (known cost) | Estimated cost of those goods sold, shown as a deduction |
| Revenue with unknown cost | Sales value left outside the profit calculation because a usable cost is missing |
| Gross profit | Net sales in the calculation minus known cost of goods sold |
| Expenses | Recorded shop expenses for the selected period |
| Other income | Entries recorded as other income for the period |
| Net profit | Gross profit minus expenses plus other income |
Treat this as a management summary based on your entries. A missing expense or an unsuitable item cost can change the picture substantially.
Choose a period you can compare fairly
Start with Last month if you want a complete month’s view. This month is useful for progress, but comparing half a month with a full month can mislead you.
Use Custom… for a specific range. Use the same dates for expense and sales checks. Check dates on expenses before deciding that the business has suddenly improved.
For the daily sales side, see the small-shop daily sales report guide. The P&L adds the cost and expense view to that discussion.
Worked example: a Pune shop’s month
Imagine a Pune stationery shop reviewing 01/08/2026 to 31/08/2026. These are illustrative report figures, not an actual customer’s results. Every sales line has a known cost, and there are no returns in this example.
The shop makes ordinary local taxable sales with the supplier and place of supply both in Maharashtra. Those sales use CGST and SGST, as explained in CBIC’s supply FAQ, question 85. The sales figures below exclude GST; this is a profit example, so no product tax rate is assumed.
| Calculation | Amount |
|---|---|
| Net sales before GST | ₹1,25,000 |
| Less: estimated cost of goods sold | ₹85,000 |
| Gross profit | ₹40,000 |
| Less: rent recorded | ₹12,000 |
| Less: electricity recorded | ₹3,000 |
| Less: other running expenses recorded | ₹5,000 |
| Total expenses | ₹20,000 |
| Other income | ₹0 |
| Net profit shown | ₹20,000 |
The arithmetic is ₹1,25,000 − ₹85,000 = ₹40,000, then ₹40,000 − ₹20,000 + ₹0 = ₹20,000. The three expense entries add up to ₹20,000; do not subtract their total a second time.
Suppose another ₹4,000 shop expense was missed. After recording it in the same period, expenses become ₹24,000 and the displayed net profit falls to ₹16,000. Check missing entries before changing selling prices.
Two limits to check in Yojika’s report
The cost estimate uses the saved item purchase price
Simple P&L estimates cost from the quantity sold and the item’s current saved purchase price. It does not match each sale to the exact batch you bought or calculate a weighted average of past purchase costs.
For example, 100 units at a saved purchase price of ₹80 give an estimated cost of ₹8,000. Change that price to ₹90, and those same units can show ₹9,000 when you rerun an older period. That reduces estimated profit by ₹1,000 without any new sale.
Keep a dated export when comparing months. If you need historical stock valuation for final accounts, discuss the costing method and adjustments with your accountant.
Unknown cost means an incomplete profit picture
A free-text sales line, a missing linked item, or an item without a positive purchase price can leave cost unknown. Yojika separates that revenue and excludes it from the displayed profit calculation.
For example, if sales before GST total ₹50,000 and ₹5,000 has unknown cost, the report’s net-sales calculation covers ₹45,000. The ₹5,000 appears separately; adding it straight to profit would assume the goods cost nothing.
Check the source items and bills. Use genuine purchase information when correcting a price. A zero purchase price also needs attention because the report treats it as unknown.
Read profit alongside cash and stock
A credit sale can appear in sales while the customer still owes the money. Buying stock can use cash while some of the goods remain unsold. This is why displayed profit and money available in the bank can differ.
Before planning a withdrawal or another stock order:
- Check customer dues and supplier balances.
- Open Cash flow to review money coming in and going out.
- Review Expense report for missing or duplicate entries.
- Check stock separately using the inventory guide.
Avoid recording a stock purchase again as a running expense. The purchases and expenses guide explains where each belongs.
Export the report and keep GST filing separate
Yojika’s reports export to CSV, PDF or Excel. Save the period with your export and note any unknown-cost entries before sharing it with your accountant.
Exporting a P&L does not file a GST return. Filing has its own declaration and submission steps on the GST portal’s GSTR-3B guide. Confirm the current filing requirements and due date on gst.gov.in or with your CA.
To try this workflow, explore Yojika’s reporting features or download Yojika. Enter your actual item costs and expenses, then compare one complete period before relying on the profit figure.
FAQ
Is the profit shown the money I can take home?
No. Customers may still owe you money, and cash may be needed for suppliers or other payments. Check outstanding balances and cash flow alongside the profit report.
Why does Yojika show revenue with unknown cost?
Some sales lines do not have a linked item with a positive saved purchase price. Their revenue is shown separately and excluded from the displayed profit calculation; it is not treated as pure profit.
Should I subtract every stock purchase from monthly sales?
No. Cost of goods sold concerns the goods sold during the period, including goods bought earlier. Yojika estimates that cost using quantities sold and the item’s current saved purchase price.
Can an older profit report change later?
Yes. Yojika uses the current saved item purchase price, so changing that price can change a report for an earlier period. Keep a dated export when comparing results over time.