What is operational profit in SAP SBO - SAP Business One?

SAP Term: operational profit

• Component: SBO

• Component Name: SAP Business One

• Description: Revenue from the regular activities of a business minus costs and expenses. Operational profit is calculated before income taxes are paid.

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• Key Concepts: 
  Operational profit is a measure of the profitability of a company's operations. It is calculated by subtracting the cost of goods sold (COGS) from the gross profit. This figure is then divided by the total sales to determine the operational profit margin. This measure is used to assess the efficiency of a company's operations and to compare it to other companies in the same industry. 
  
  How to use it: 
  In SAP Business One, operational profit can be calculated using the Profit & Loss report. This report will show the total sales, cost of goods sold, and gross profit for a given period. The operational profit can then be calculated by subtracting the COGS from the gross profit and dividing by total sales. 
  
  Tips & Tricks: 
  When calculating operational profit, it is important to consider all costs associated with running a business, such as overhead costs, taxes, and other expenses. These costs should be included in the COGS figure in order to get an accurate measure of operational profit. 
  
  Related Information: 
  Operational profit is an important measure for assessing a company's performance and efficiency. It can be used to compare a company's performance to that of its competitors in the same industry. Additionally, it can be used to identify areas where a company can improve its operations in order to increase profitability.