The Profit & Loss report is a full breakdown of all of your categorized Income, Expenses, and Net Profit totals for any date range you choose. Any Income or Expense transaction (added by the user or tracked automatically by InventoryLab) is added to the Profit & Loss report based on the date the transaction was posted.

IN THIS GUIDE:

Profit & Loss Report Overview
- Changing the View Timeframe
Income & Expense Categories
- Income
- Expenses
  - Cost of Goods Sold
Other Categories
- Current & Previous Reserve Amounts

Profit & Loss Report Overview

To view the Profit & Loss report in InventoryLab, click Reports>Profit & Loss.

This report updates regularly as InventoryLab syncs new data from Amazon:

Sales update every 2-3 hours throughout the day.
Reimbursements update daily.
Reconciliation, Refunds, Other Expenses (such as FBA inbound shipments, disposal fees, storage fees, advertising, etc.) update after each payment disbursement (settlement close)

Amazon provides a report at the close of each settlement period with them, which is usually every 2 weeks. This report contains a lot of information that we sync, including a large majority of your expenses, and is used to reconcile your data for the settlement period.

There is a timestamp available on the P&L to show the last fully reconciled date after a settlement report was received.

InventoryLab-profit-loss-report-time-stamp

Note: The timestamp reflects the last full date of data that was reconciled since dates can get cut off in the settlement reports. For example, if a settlement period ended on 1/01/2022, it's possible that some later transactions for that day could be included in the upcoming report, so the timestamp will display as 12/31/2021.

For a full list of what we sync from Amazon please see: What Does InventoryLab Track Automatically and When?

Changing the View Timeframe

The default view of the Profit & Loss report is the current month. You can change the view to specify a preset date range, based on Daily, Weekly, Monthly, Quarterly, Yearly, or Custom, then click View.

InventoryLab-profit-loss-report-date-range

You can Export any view you select.

Income & Expense Categories

Your income and expenses section contains both items tracked automatically from Amazon and any items you place in the Other Income, Other Expenses, and optional Inbound Shipping areas.

Income

Category	Explanation
Sales	Shipped FBA and MFN sales.
Refunds	Refunds back to the buyer.
Reimbursement	Reimbursements to the seller.
Shipping Credit	The amount the buyer paid for shipping: If MFN, this amount goes to the seller. If FBA, this is offset by a chargeback or promotion.
Shipping Credit Refunds	If the buyer is refunded, they get their shipping back. If it's FBA, the seller gets the chargeback amount back.
Gift Wrap Credits	How much the buyer pays for their items to be gift-wrapped: If MFN, the seller gets this. If FBA, this is offset by a chargeback.
Gift Wrap Refunds	If the buyer is refunded, they can get what they paid for gift wrap back.
Promotional Rebates	Any promotion the buyer used to subtract a cost from the order. For example, it can be a money-off promotion or a free shipping promotion. When it's for free shipping, it offsets a shipping credit for FBA.
Promotional Rebate Refunds	If the buyer is refunded, they get their money back. Since they got a promotion, the promotion refund will be credited back.
Good Will	Sometimes, Amazon Customer Service provides a refund of something to accommodate the buyer. In this case, they can take this money from the seller initially but reimburse it.
Restocking Fee	This fee can be charged to a buyer on a refund that is outside of the refund policy. More info here.
Order Retrocharge	When a buyer gets their money back for an order (such as for a chargeback or A-Z claim) the seller can work with them and the buyer can agree to be recharged. This recharge is called an Order Retrocharge. Info on this process is here. A retrocharge also happens if a buyer is given a refund before they return an item to the fulfillment center and the buyer does not return the item. More info here.
Postage Adjustment	An adjustment to postage that has already been paid for.
Amazon Misc. Adjustment	An adjustment to a seller's account that Amazon doesn't have a category for.
Liquidation Proceeds	When items are liquidated in lieu of removing or disposing of them, this is the money that the seller makes. More info here.
A2Z Recovery	The result of an A to Z claim. When a buyer reaches out to Amazon and files a claim, the seller can win or lose money.

Expenses

Category	Explanation
Amazon Referral Fee	The referral fee charged per order (also known as a Commission Fee) and is based on the item's category and the list price + shipping.
Closing Fee	This fee is placed on all media items sold. Media includes Books, DVDs, Music, Software & Computer/Video Games, Video, Video Game Consoles, and Video Game accessories. Fee schedule here. This category also contains an MFN Shipping Fee called a "Shipping Holdback Fee" or "ShippingHB fee", which is tracked automatically from Amazon. It is a part of the referral fee charged on the product selling price (includes the shipping and gift wrap charges) which is paid by the buyer.
FBA Fulfillment Fees	Fulfillment fees are charged for FBA orders and are based on the weight and dimensions of the items in the order.
Gift Wrap Chargeback	If a buyer paid for gift wrap, the amount paid goes to the seller. If Amazon is doing the gift wrap, they take that money in a chargeback.
Shipping Chargeback	For FBA orders, if a buyer pays for shipping since Amazon provides the shipping, they take that money from the seller.
Gift Wrap Chargeback Refund	If the buyer gets a refund, Amazon has to refund the chargeback they took back to the seller so that the buyer can get their gift wrap refund.
Shipping Chargeback Refund	This is if the buyer gets a refund, Amazon has to refund the chargeback they took back to the seller so that the buyer can get their shipping refund.
30 Day Storage Fees	The monthly charge to sellers for Amazon storing items in their fulfillment centers. Fee info here.
Removal Order Fees	The fees that are charged when sellers remove inventory from Amazon's fulfillment centers. Fee info here.
Disposal Order Fees	The fees that are charged when sellers have inventory disposed of in Amazon's fulfillment centers instead of removing it. The article linked above shows the fees.
Inbound Shipping Fees	The costs associated with shipping items to a fulfillment center.
FBA Inbound Placement Service Fees	The costs associated with how items are distributed to Amazon fulfillment centers. These fees are charged based on the Inbound placement service fee option chosen within a seller's FBA account settings in Seller Central when shipments are created. Fee info here.
Long Term Storage Fees	These are fees assessed to inventory that has been in a fulfillment center for longer than 365 days. This is charged monthly on the 15th. Fee info here.
FBA Customer Return Per Order Fee	A fee that is assessed for returned items of certain categories that automatically have free return shipping. Fee info here.
Refund Administration Fee	This is charged for all customer returns for non-media products. Fee info here.
MFN Shipping Label Cost	The amount the seller paid for MFN shipping labels.
Shipping Label Refunds	The amount the seller was refunded for shipping labels.
Cost of Advertising	The total cost that a seller paid for advertising if it was paid for using your Amazon disbursements. This includes PPC fees if paid using your Amazon disbursements.
Manual Processing Fee	A manual processing fee is charged when a seller does not provide box content information for shipments when it is required. Fee info here.
Retrocharge Refund	This is when a retrocharge is refunded back to the buyer in the case of a return not being received. In this case, the buyer got that advanced refund, didn't return it in time, so they were charged again in what is called a retrocharge. If the buyer eventually does turn it back in, they get refunded that charge.
Warehouse Prep Fees	These include any FBA Prep Service Fees, including FBA Label Service Fees. Info on services and fees here.
Selling Fee Refunds	A refund of a seller's selling fees.
Sale Tax Service Fee	The fee Amazon charges to collect sales tax for a seller. In the terms of their service for Tax Calculation Services, Amazon states "If you use the tax calculation services, you will pay us 2.9% of all sales and use taxes and other transaction-based charges we calculate. We will retain these fees in the event of any refund on related transactions." More info here.
Closing Fee Refunds	A refund of any closing fees.
Balance Adjustment	If Amazon has to adjust a seller's balance for any reason, it's called a balance adjustment. Examples of these could be if Amazon doesn't give a seller enough in a reimbursement or if they overcharged something.
Amazon Pro Subscription Fee	The amount that sellers pay to Amazon to be a Pro Seller (currently $39.99/month.)

Cost of Goods Sold

In addition to the cost/unit amounts for the items that have sold, the Cost of Goods Sold line on your Profit & Loss report includes costs captured from your reimbursements, returns, and removals/disposals/liquidations as well.

For more information, please see: What Does the Cost of Goods Sold Line on My Profit & Loss Report Include?

Note: If you manually create a category named "Cost of Goods Sold" under Accounting>Other Expenses, the expenses can be lumped in with the COGS we automatically track for you. We recommend avoiding this to prevent confusion.

Other Categories

The Other section is there for informational purposes, and the categories contained within this section do not have any effect on your overall net profit.

This includes sales tax collected, the Marketplace Facilitator Tax, current and previous reserve amounts, and manually entered Mileage entries.

Category	Explanation
Sales Tax Collected	This is how much sales tax was collected by Amazon.
Marketplace Facilitator Tax	How much of the sales tax collected was Marketplace Facilitator Tax, which is when Amazon automatically collects and remits taxes for orders in certain states on behalf of the seller. More info here.
Sales Tax Refunds	Refund of the sales tax amount back to the buyer for a refunded order.
Marketplace Facilitator Tax Refunds	A refund of the sales taxes Amazon collected automatically for the seller back to the seller when a buyer is refunded their sales tax.

Current & Previous Reserve Amounts

The reserve amounts are displayed for informational purposes and are not included as a part of your income or expenses in the P&L. They are displayed to show that, while you made the sales, the funds from those sales have not yet been released to you.

Note: We receive that amount each time you have a disbursement every two weeks in which we receive your settlement reports. Each time we receive the amount, it's a fresh reserve number, which could include amounts from the previous reserve.

The best way to view the true reserve number is to change your P&L to your disbursement date or the day after.

What's next?

For more information on reserve balances, please see: What is account level reserve?