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Shipping costs as sales expenses and gross profit

edited Jun 2, 2025 2:22PM in Ask A Guru 1 comment

Hi there,

we have inventory item with purchasing value of 120. We are selling this item for 150. The shipping cost for delivery to customer is 5 and we are not recharging anything to the customer – meaning that our sales revenue re this transaction is 150 (no revenue on shipping). Our gross result is 150-120=30 but I want to see that my profit is actually 30-5=25 because shipping expense (shipping on sales) is covered by us. So, the idea is to link this shipping cost to SO although we do not want to see this amount on invoice issued to customer.

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