How Net Sales Are Calculated in 7shifts

Updated January 09, 2025 20:19

Understanding how Net Sales are calculated in 7shifts can help you better interpret your restaurant's financial data. Here's a quick breakdown of our calculation method.

⚠️ POS systems may define and calculate sales differently. At 7shifts, our data model aligns with standard accounting practices that exclude service charges and other non-revenue items to ensure accurate and consistent reporting.

How 7shifts Calculates Net Sales

Net Sales represent the revenue generated after adjustments for discounts and comps. In 7shifts, the formula is:

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

Gross Sales includes all revenue from sales transactions before any deductions. Discounts and comps are then subtracted to provide a clear picture of your sales performance
Discounts refer to reductions in price applied to customer purchases
Complimentary (Comps) items refer to goods or services provided at no charge, typically as a gesture of goodwill

What’s Excluded from Net Sales

To ensure Net Sales reflect only revenue from direct sales, 7shifts excludes the following items from its calculations:

Service Charges
Tips
Gratuities
Fees
Non-revenue items (e.g. gift card sales, which are considered deferred revenue)

How Toast POS Net Sales Are Calculated in 7shifts