Calculating Net Sales in 7shifts

Understanding how Net Sales are calculated is crucial for effectively analyzing your restaurant's performance and 7shifts reporting. This article explains the 7shifts Net Sales calculation, assuming you have an active Point of Sale (POS) integration syncing sales data to your 7shifts account. While your POS system may calculate sales differently, 7shifts uses standard accounting practices, excluding service charges and other non-revenue items by default, to ensure consistent and accurate reporting. 

Here's a breakdown of the 7shifts calculation method.


How 7shifts Calculates Net Sales

Net Sales represent revenue after discounts and comps. The 7shifts formula is:

Net Sales = (Gross Sales) - (Discounts) - (Comps)

Where:

  • Gross Sales: Total revenue from all sales transactions before any deductions.
  • Discounts: Price reductions applied to customer purchases.
  • Comps: Goods or services provided free of charge.

Items Excluded from 7shifts Nets Sales 

To accurately reflect revenue from direct sales, 7shifts, by default, excludes the following:

  • *Service Charges: Fees added to customer bills for service.
  • Tips: Payments given by customers to staff.
  • Gratuities: Similar to tips, often pre-calculated.
  • Fees: Other charges, like delivery or processing fees.
  • Non-Revenue Items: Items that aren't direct sales revenue, such as gift card sales (considered deferred revenue).

Including Service Charges in 7shifts Nets Sales: 

Although Service Charges are excluded in 7shifts by default, some POS systems, specifically Toast, TouchBistro, Revel, and Square, can include service charges in their Net Sales calculations by enabling the option in their 7shifts account.  

To include service charges in your 7shifts Net Sales calculations:

  1. Log in to the 7shifts web app as an Admin or Manager with the appropriate permissions.
  2. Go to Apps & Integrations > My Integrations > [POS] Integration Settings.
  3. In the Sales tab, enable "Include service charges." 

⚠️ Note: This will affect all 7shifts sales calculations, including tip pool contributions.

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