Profit & Loss
Revenue minus cost of revenue = gross profit, then minus expenses and depreciation = net profit.
Overview
Where to find itAccountingFinancial ReportsProfit & Loss
In the example: gross profit 194,016; expenses (rent 48,000, salaries 64,572 from payslips and the company’s GOSI share, utilities 9,985, marketing 8,000, transport 2,725, maintenance 2,200, bank charges 422, end-of-service 3,879, other 21) plus depreciation 12,267 come to 152,071, so net profit is about SAR 41,945.
Notes
- For cost of goods sold to appear here, the stock output account of each product category must be a "Cost of Revenue" account. If it is an asset account, the cost stays on the balance sheet and profit looks higher than it is.