P&L: one identity, no surprises
The single line of arithmetic the whole money side has to satisfy.
6 minute read
Every money screen in Operator X resolves to one identity. If a number looks wrong, walk this line and the disagreement will be on exactly one row.
gross charged − sales tax = net revenue net revenue − product cost (FIFO) − host share − referrer cuts − payroll − 2% platform fee = operator net
| Row | Where it comes from | Where to fix it |
|---|---|---|
| Gross charged | Delivered vends, tax inclusive | Orders |
| Sales tax | Your rate schedule at the time of each sale | Tax |
| Product cost | Oldest inventory lots consumed first | Warehouse |
| Host share | Each venue's own commission deal | Venues |
| Referrer cuts | Referrers listed on the venue | Venues |
| Payroll | Crew hours in the window × their rate | Payroll |
| Platform fee | 2% of net revenue | Fixed |
Product cost is zero until you receive stock
FIFO can only cost what it knows about. Until purchase orders are received into the Warehouse, cost of goods reads zero and operator net looks better than it is. This is the single most common reason a first P&L looks too good.
Amounts are held as whole cents everywhere, so a total never drifts by a rounding artefact. Choosing a period narrows sales, payroll and cost together, and an empty period reports zeroes rather than failing.