Refunds and cancellations are the part almost nobody counts correctly, and the one that distorts profit the most. A sale collected today and returned two weeks later is not the same sale.
The typical mistake
Summing all of the month's sales and subtracting the month's refunds mixes different periods: you're subtracting returns from sales that don't belong to that month. The result is a margin that swings for no reason.
- Count the refund against the original sale, not against the period it's processed in
- Distinguish a cancellation (voided order) from a refund (money returned)
- Include partial cancellations (lines removed from an order)
A profit that doesn't count returns properly isn't optimistic — it's fiction.
Do it right, automatically
ProfitFly anchors every refund and cancellation to its order and its correct date, so your daily margin reflects reality and not an artifact of the accounting calendar.