Contra Variable Expenses in BeProfit are used to record negative expenses or credits that offset your costs,such as rebates, returns, or discounts that reduce your overall costs. These are important for accurately reflecting your true profitability
What is a Contra Variable Expense?
A Contra Variable Expense is an expense entry that reduces (rather than increases) your total expenses. For example, if you receive a rebate from a supplier based on your order volume, you can record this as a contra expense to lower your reported metrics.How to Add a Contra Variable Expense
1. Go to Settings > Costs > Variable and Custom Expenses in BeProfit.
2. Click “Add Contra Variable Expense.”
3. Fill in the required fields, such as Expense Status, Category, Metric Allocation, and Expense Label.
4. Choose how the expense should be calculated under "Expense Amount."
New Feature: "% of Order" Calculation
We have introduced a new calculation type for both Variable Expenses and Contra Variable Expenses: "% of order".- This allows you to set a contra expense as a percentage for each order.
- For example, if you receive a 5% rebate on your COGS from a supplier, you can now automatically apply this percentage to each order’s COGS.
How to Use the New Feature
- When adding or editing a Contra Variable Expense, select "% of order" in the "Expense Amount" section.
- Enter the percentage value that should be applied.
- Save your changes. The system will now automatically calculate and apply this contra expense to each order based on your conditions.
Why Use Contra Variable Expenses?
- To accurately reflect supplier rebates, credits, or other cost reductions.
- To ensure your profit calculations are as precise as possible.