How BOS Afora Calculates Profit
BOS Afora shows profit as the money that came in minus the money that went out, counted on the day the cash moves. That keeps it simple enough to check against your till, and it also means a few things behave differently from the profit figure an accountant prepares.
This page explains each rule with a small example, so nothing in your evening briefing is a surprise.
Last updated 2026-10-22
The formula
Profit for a period is revenue minus expenses.
- Revenue is your sales plus the debts your customers repay.
- Expenses are everything you record as spending, including stock you buy.
Sales on credit
When you sell on credit, BOS Afora records a debt for the customer. The sale counts as revenue on the day the customer pays, because that is the day cash arrives.
Monday: you sell goods worth ₦50,000 on credit to a customer. Monday's revenue from this sale: ₦0. The customer appears under customers who owe you.
Friday: the customer repays ₦50,000. Friday's revenue rises by ₦50,000, and the debt is cleared.
Buying stock
A restock recorded with a unit cost is counted as an expense on the day you buy it. Buying stock therefore lowers profit for that period, even though the goods are still on your shelf and you will earn from them later. A restock can be recorded without counting it as an expense when you prefer that.
Today you sell ₦120,000 of goods and spend ₦40,000 on running costs, so profit looks like ₦80,000.
You also buy ₦100,000 of stock today. With that restock counted as an expense, today's profit shows -₦20,000. The goods are an asset you will sell over the coming days.
Returns
A customer return puts the item back in stock and records a negative sale, so revenue, profit and every report go down by that amount. If you do not tell BOS an amount, it uses the item's last selling price and says so in its reply.
A return of goods that were sold on credit does not yet reduce what the customer owes. Adjust that balance by recording the correction against the customer.
Item margins are separate
BOS Afora keeps a weighted-average cost for each inventory item. Item-level margins and the profit drivers report use it: selling price minus average cost, times the quantity sold. This does not change the headline profit figure, which stays cash in minus cash out.
You buy 10 units at ₦1,000 and later 10 more at ₦1,200. The weighted-average cost is ₦1,100.
You sell a unit at ₦1,500. Its margin is ₦400.
What this figure is, and is not
- It is a cash view designed to help you run the business day to day.
- It is not the profit used for tax. BOS Afora does not file taxes or give accounting advice, so speak to an accountant for those.
- Money customers owe you is shown under customers who owe you, and counts as revenue only once it is paid.
Common questions
Why did my profit drop when I bought stock?
A restock recorded with a unit cost counts as an expense on the day you buy it, so a large restock lowers that period's profit even though the goods are still on your shelf. You can record a restock without counting it as an expense. Profit here is a cash view of your business, and it is not the same as the profit figure used for tax.
How stock purchases are counted →How are customer returns handled?
A return puts the item back in stock and records a negative sale, so revenue, profit and reports go down by that amount. If you do not give an amount, BOS uses the item's last selling price and tells you in its reply. A return of goods that were sold on credit does not yet reduce what the customer owes.
Is BOS Afora profit the same as taxable profit?
No. BOS Afora shows a cash view of your business for running it day to day. Taxable profit follows accounting and tax rules that BOS Afora does not apply, so use an accountant for tax.
Why is money my customers owe me not in my revenue?
A sale on credit is recorded as a debt and counts as revenue only when the customer pays. Until then it appears under customers who owe you.
What if I record something wrong?
Tell BOS what to fix, for example "Fix yesterday's rice sale to 40k". For something you just recorded, you can cancel it straight away. For older entries, ask BOS to fix or remove that specific one.
How to correct a sale mistake →See it on your own numbers
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