Kobas can store a wealth of information about your hospitality business, but it’s important to know what you’re looking at. Where possible we’ve used industry standard terms but just to make sure everyone is on the same page, we’ve put together a list of commonly used terms and the meaning they have within Kobas. If you think we’ve missed something off (or got something wrong), please let us know by emailing email@example.com.
This is the total amount of funds you’ve taken. It includes: cash, cards, cheques, deposits, service charge, card tips, money taken for petty cash and any other form of income. This is the number you’re aiming to match during your closing tasks and is one side of the equation that creates your variance.
Revenue (gross & net)
Revenue is a function of payments, but gives you an indication of how well you traded. It’s made by taking the Gross Payments figure and deducting: service charge, tips and deposits received. There are 2 flavours of revenue, gross and net, where net has any applicable taxes removed – if all your sales incur full rate tax, this is a straightforward calculation, if you have some sales that are tax exempt or on a reduced rate, we will take these into account when generating the net.
Net Margin is simply the difference between the costs of your goods, and the price at which you sell them. This is therefore the profit that you make on each sale. The formula that we use to calculate this is:
Net Margin = net selling price – net cost
Gross Profit is the difference between revenue and costs. The percentage is a representation of profitability, either of individual products or your business as a whole. The formula we use to calculate your gross profit is:
GP = (Net Margin/Net Selling Price) x 100
This figure is the total of all the items you’ve sold over a period, typically a session. This number will be the same as revenue (gross) unless you allow tabs to stay open across a number of sessions, meaning items purchased in session 1 may not be paid for until session 4 etc.
This an amount (a percentage of the total bill) that can be added to tabs. Where service charge is compulsory, this amount incurs tax, where the charge is suggested or recommended, it does not.
Tips are given over and above the total bill and service charge and never incur tax. KOBAS does not track cash tips via its EPoS system, but they can be entered during the cash declaration stage in the closing tasks.
A term used to describe the combined amount of cash service charge, card service charge and card tips.