Understand Sales Order COGS and Gross Profit

Crunch calculates sales-order costs from the sold variations, recipe ingredients, modifiers and inventory data. Review these figures after creating the order, in the list, order detail and Sales Orders analytics.

What COGS Includes

Cost of goods sold (COGS) is the cost assigned to the stock used by an order. Crunch can store costs for:

• recipe ingredients consumed by a menu item
• item-based modifiers that consume inventory
• direct finished-stock consumption, such as a hybrid item
• each line's combined cost

Order COGS is the sum of the stored line-item costs. You do not enter COGS manually in the create-order form.

Gross Profit and GP %

For the stored order, gross profit = order total − order COGS. GP % expresses gross profit as a percentage of the order's sales value.

Gross profit does not deduct wages, rent, utilities or other overheads, so it is not net business profit.

Review tax, discounts, tips and service charges separately when reconciling the total. The stored order calculation uses its order total, which can include service charges; do not assume every displayed total is a tax-exclusive food-cost measure.

Modifier Price Is Different from Modifier Cost

Price Adjustment changes what the customer pays. Amount Adjustment on an item-based modifier defines stock consumption, which can add cost. A custom price-only modifier does not have the same stock relationship.

Where to Review the Figures

• Sales Orders list: Total Sales, COGS and GP % for each order.
• Order detail: line values, modifiers and Inventory Impact.
• Sales Orders → Analytics: Revenue & Profit, Costs & Averages, item rankings and Product Profitability.

Check the Inputs

If cost or margin looks wrong, check the sold variation's recipe, ingredient amounts, item-based modifier quantity and location inventory costs. Missing or incomplete input data can make a margin look better than it is.