Gross profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services. It represents the revenue remaining after deducting the cost of goods sold (COGS).

Formula: Gross Profit = Revenue - Cost of Goods Sold (COGS)

Gross profit is an important indicator of a company's financial health and its ability to turn revenue into actual profit. A higher gross profit margin indicates that a company is more efficient at converting revenue into profit.

Income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. It is a direct tax levied on the net income or profits of taxpayers.

For businesses, income tax is typically calculated on the company's taxable income after allowable deductions and expenses have been subtracted from total revenue. The tax rate varies depending on the jurisdiction and the type of business entity.

Businesses are required to file tax returns periodically (usually annually) and pay the calculated income tax to the relevant tax authority.

An invoice is a commercial document issued by a seller to a buyer that indicates the products, quantities, and agreed-upon prices for goods or services that the seller has provided to the buyer. It serves as a request for payment and provides a record of the sale.

Key elements of an invoice typically include:

• Invoice number (unique identifier)
• Date of issue
• Seller and buyer information
• Description of goods or services
• Quantities and unit prices
• Total amount due
• Payment terms and due date

Invoice Statuses in Krono:

• Draft: The invoice is being prepared and has not been finalized or sent to the customer yet.
• Submitted: The invoice has been finalized and sent to the customer, awaiting payment.
• Paid: The customer has paid the invoice in full.
• Void: The invoice has been cancelled or nullified and is no longer valid.
• Archive: The invoice has been archived for record-keeping purposes and is no longer active.

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. It involves the coordination of complex operations involving people, facilities, and supplies.

In business, logistics typically encompasses:

• Inventory management
• Warehousing and storage
• Transportation and delivery
• Order fulfillment
• Supply chain coordination

Effective logistics management is crucial for businesses to ensure products reach customers efficiently, cost-effectively, and on time. Poor logistics can lead to delays, increased costs, and customer dissatisfaction.

Net pay, also known as take-home pay, is the amount of money an employee receives after all deductions have been subtracted from their gross pay (total earnings before deductions).

Formula: Net Pay = Gross Pay - Deductions

Common deductions include:

• Income tax
• Social security contributions
• Pension contributions
• Health insurance premiums
• Other voluntary deductions

Net pay is the actual amount that gets deposited into an employee's bank account or paid via check. Understanding net pay is important for both employers and employees for budgeting and financial planning purposes.

A quote, also known as a quotation or estimate, is a document that a seller provides to a potential customer outlining the proposed price for goods or services. It serves as a formal offer to supply products or services at specified terms and prices.

Key characteristics of a quote:

• It is provided before a sale is finalized
• It outlines the scope of work or products to be delivered
• It specifies pricing, terms, and conditions
• It may have an expiration date
• It is not a legally binding request for payment (unlike an invoice)

Quotes help customers make informed decisions by comparing offerings from different suppliers. Once a customer accepts a quote, it can often be converted into an invoice or purchase order to formalize the transaction.

Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. It represents the top line or gross income figure from which costs are subtracted to determine net income.

Basic Formula: Revenue = Number of Units Sold × Price per Unit

For service-based businesses:

Revenue = Number of Customers × Average Price of Services

Revenue is a critical financial metric that appears at the top of the income statement. It's important to note that revenue is recognized when earned, not necessarily when cash is received. This is known as the accrual basis of accounting.

Types of revenue include:

• Operating Revenue: Income from primary business activities
• Non-Operating Revenue: Income from secondary activities (e.g., interest, rent)

Turnover has different meanings depending on the context, but in business finance, it generally refers to the total sales or revenue generated by a company during a specific period. In this context, turnover is essentially synonymous with revenue.

Types of Turnover:

• Sales Turnover: The total value of sales made during a period
• Inventory Turnover: How many times inventory is sold and replaced over a period
• Asset Turnover: How efficiently a company uses its assets to generate revenue
• Employee Turnover: The rate at which employees leave and are replaced

In financial reporting, when someone refers to a company's turnover, they typically mean the total sales revenue. A higher turnover generally indicates strong business activity, though profitability also depends on costs and expenses.