The terms you need to understand your profit

The average value of an order in the period under review. Decide beforehand whether you calculate net or gross and stick to that definition.

Assigning a purchase to the ad contacts before it. The same order can be credited to several platforms depending on the attribution window, so platform figures cannot simply be added up.

The net revenue of the whole shop divided by all advertising spend, regardless of platform attribution. It is MER without agency and fixed marketing costs.

The point at which the contribution margin exactly covers the fixed costs. If the per-unit contribution margin is zero or negative, there is no positive break-even.

The blended ROAS at which the contribution margin before advertising just covers the advertising spend. If the actual blended ROAS is above it, advertising pays off on this cost basis.

The cost of the goods sold: purchase or production including directly attributable packaging. When purchase prices change, the value at the time of sale counts.

The net revenue left after deducting the chosen variable costs to cover fixed costs and profit. There are several levels (for example after cost of goods, after order-related costs, after advertising costs); only compare values at the same level.

An interface through which a server reports events to an advertising platform, in addition to the browser pixel. Pixel and CAPI must be deduplicated through a shared event ID; consent and data protection requirements still apply.

The contribution a customer makes over the period under review. More meaningful than revenue is the contribution margin per customer; the period and cost level must be stated.

Assigning transactions to the accounts of a chart of accounts so that the tax firm can take them over into DATEV. NorthProfit checks accounts and format as a working basis; there is no direct transfer to DATEV.

An invoice in a structured electronic format under EN 16931. A normal PDF or a scan is not an e-invoice. ZUGFeRD combines a PDF with embedded XML; XRechnung is a pure XML format.

The German principles for the proper keeping and retention of books, records and documents in electronic form. The whole process must, among other things, be traceable, complete, correct, timely, orderly and unalterable.

The share of the net selling price that remains after deducting the purchase price. It is calculated on net prices because VAT is not income.

The gross profit as a percentage of the purchase price. A markup of 100% equals a margin of 50%.

Net revenue divided by total marketing costs across all channels. MER shows overall efficiency but on its own says nothing about cost of goods, fees, shipping or returns.

The profit left after all attributable costs: cost of goods, shipping, payment and platform fees, returns, advertising and the defined operating costs.

Net profit as a percentage of net revenue (excluding VAT).

Revenue excluding VAT and after allocated refunds. It is the comparable revenue base for margin, contribution margin and ROAS metrics.

The special taxation scheme through which sales to private customers in other EU countries are reported centrally to the BZSt. An OSS report prepares the data; the filing itself and the professional review remain separate.

The collected payment from a payment provider or marketplace. A payout combines many transactions, fees and refunds and should be traceable to its individual items.

The share of returned orders or items in the period under review. Decide whether you count by orders or units, and look at the rate per SKU rather than only on average.

The revenue credited to a campaign or platform per advertising euro. ROAS depends on the platform's attribution rules and is not a complete profit calculation.

The two common DATEV charts of accounts for bookkeeping in Germany. Which chart applies is decided by the accounting firm; the account assignment has to match.

The unique identifier of an item variant in the warehouse and in the shop. Costs, returns and margin can be evaluated more precisely per SKU than as an average across all products.