Income Statement Sheet

Updated 24.10.2023

Ellis income statement,  or a profit and loss statement (P&L), provides a summary of the revenues, expenses, and profits or losses of an eCommerce business. It is one of the primary financial statements used to report financial performance over a specific accounting period. 

In Ellis, income statements are 

  • summarised on a monthly basis per connected ecommerce store.
  • generated by combining data from Shopify, connected marketing channels, batch imported data such as shipment costs, and manually entered data such as other expenses.
  • updated once in a day based on created sales and expenses.
  • calculated with tax-free values.

Profitability trends and visualisations are available under Inventory & Profitability menu in Profitability dashboard.

See more details about setting shipment costs and country specific default shipment costs from Settings.

 

Income Statement Field Explanations

REVENUES

DESCRIPTION

SOURCE

Point of Sales sales

Sales made through a Shopify PoS

Automatic

Online sales

Sales made through online channels

Automatic

Gift cards sales (liability)

Revenue from sales of gift cards (liability)

Automatic

Returns

Amount of money returned due to product returns

Automatic

Other revenues

Any other additional sources of revenue outside Ellis connected sales channels.

User entered data

Total Revenues

Sum of all the revenues

Formula

Non-operating Revenue (GM3)

Revenue that comes from non-core business activities

User entered data

 

 

COSTS & GROSS PROFITS

DESCRIPTION

SOURCE

Cost of goods sold

Cost to produce goods that were sold. If product costs are not set, default product margin % is used to set a cost.

Automatic

Cost of goods sold (other revenues)

Cost related to 'Other revenues'

User entered data

Product Gross Profits (GM1)

Gross profit from products.

Total Revenues - Cost of goods sold

Formula

Product Gross Margin (GM1) %

Gross margin percentage for products. Product Gross Profits / Total Revenues x 100

Formula

 

 

EXPENSES

FIXED COSTS

DESCRIPTION

SOURCE

Rent

Cost of leasing the business space

User entered data

Insurance

Premiums paid for insurance coverage

User entered data

Fees (banking, licences, etc.)

Costs related to banking, licences, and similar

User entered data

Other fixed costs

Any other fixed business expenses

User entered data

Total Fixed Costs

Sum of all fixed expenses

Formula

VARIABLE COSTS

DESCRIPTION

SOURCE

Payroll

Salaries, wages, and other compensation

User entered data

Handling costs

Costs to handle and process orders

User entered data

Shipping costs

Costs to ship products to customers (connected to Ellis)

Automatic

Payment costs

Costs related to processing payments

User entered data

Utilities

Costs of utilities such as electricity, water, etc.

User entered data

Equipment and supplies

Costs of tools, equipment, and supplies used in the business

User entered data

Marketing spend (connected to Ellis)

Marketing costs specifically for promoting Ellis

Automatic

Marketing spend (other)

Other marketing expenses not directly connected to Ellis

User entered data

Other expenses

Any other variable expenses

User entered data

Total Variable Costs

Sum of all variable expenses

Formula

Total Expenses

Sum of both fixed and variable expenses.

Total Fixed Costs + Total Variable Costs

Formula

 

 

OPERATING GROSS MARGIN

DESCRIPTION

SOURCE

Operating Gross Profits (GM2)

Profits before interest, taxes, and other similar deductions.

Total Revenues - Total Expenses

Formula

Operating Gross Margin (GM2) %

Percentage of operating gross margin.

Operating Gross Profits / Total Revenues x 100

Formula

 

 

 

NET PROFIT MARGINS

DESCRIPTION

SOURCE

EBITDA

Profits before interest, taxes, depreciation, and amortization.

Operating Gross Profits + Non-operating Revenue

Formula

Interest

Cost of borrowed capital or loan interest

User entered data

Taxes

Taxes owed to the government

Automatic

Net Profit / Losses

Final profit or loss after all deductions.

EBITDA - (Interest + Taxes)

Formula

Net Profit Margins (GM3) %

Percentage of net profit margins.

(Net Profit / Total Revenues) x 100

Formula