Home › Forums › Cost of Goods for WooCommerce › How to include shipping in profit calculations?
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- This topic has 8 replies, 3 voices, and was last updated 2 years, 10 months ago by Chris Fontes.
July 10, 2020 at 9:55 pm #89340Chris FontesGuest
It doesn’t appear that the profit calculation is adding what we’ve captured for shipping.
We charge a flat $3.99 for shipping. Sometimes we make money, sometimes we lose, but the $3.99 was captured and needs to be added to total profit.
Also, is there a way to have the Woocommerce shipping services functionality auto update the shipping cost on an order?July 10, 2020 at 10:09 pm #89341Christopher FontesParticipant
It looks like if you add the following line to incudes/tools/class-alg-wc-cost-of-goods-core.php in between line 573 and 574 (create a new line):
$profit += $order->get_shipping_total();
that is all it needs. You may want to make this an option though (EG, “Add shipping total as profit” in shipping settings)July 10, 2020 at 10:11 pm #89342Christopher FontesParticipant
sorry that file location was incorrect – it is just:
includes/class-alg-wc-cost-of-goods-core.php after line 573August 7, 2020 at 2:34 am #89343TyeGuest
Was this fixed – I’m testing the plugin, and noticed that its the only thing missing as we do the same an calculate Sales revenue including the shipping price.August 7, 2020 at 7:13 am #89344Tom AnbinderModeratorPlugin Support
Sorry for the late reply.
Generally, shipping shouldn’t be included in profit calculations, as profit = items price – items cost, so as shipping is not included in “items cost”, it shouldn’t be included in “items price”. However, I can see that this could be a useful feature for some of our plugin users, so please give me a couple of hours to add it to the plugin. As suggested, I’m going to make it optional. Will get back to you shortly…August 7, 2020 at 11:56 am #89345Tom AnbinderModeratorPlugin Support
As promised, we’ve just released new plugin v2.0.0, where I’ve added new “Shipping to profit” checkbox option to “WooCommerce > Settings > Cost of Goods > Orders > General Options”. Please give it a try and let me know if there are any issues. By the way, I’ve realized that this could be done even with a previous plugin version. It’s a bit of a workaround though – you could set “Fixed cost” option(s) in “WooCommerce > Settings > Cost of Goods > Extra Costs: Shipping Methods” to a negative value, e.g.
Please let me know if you have any questions. And if you like the plugin, please consider leaving me a rating.August 7, 2020 at 5:21 pm #89346Chris FontesGuest
“Generally, shipping shouldn’t be included in profit calculations, as profit”
It definitely needs to be for a lot of use cases, but I see you are adding this in as an option, so problem solved!August 7, 2020 at 5:24 pm #89347Chris FontesGuest
“…so as shipping is not included in “items cost”, it shouldn’t be included in “items price”.”
We actually add the cost of shipping to our order cost via the override. Our store offers free shipping above a threshold, and dynamic shipping below, so we need to know what our total profit per order was.
In fact, I would LOVE LOVE LOVE LOVE if you would include an option to take the shipping costs from Woocommerce Services (when you print a label with them) and auto-add it to the order shipping cost automatically.August 7, 2020 at 5:26 pm #89348Chris FontesGuest
“… you could set “Fixed cost” option(s) in “WooCommerce > Settings > Cost of Goods > Extra Costs: Shipping Methods” to a negative value, e.g. -3.99.”
We actually were thinking of doing just that, but what we charge is dynamic (free over a threshold), so it doesn’t apply across the board.
And the actual cost varies as well, hence the request for Woocommerce Services shipping label cost to auto-add to the order fixed cost override meta.
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