Contribution Margin Report

The Contribution Margin Report in O2VEND Back Office provides a complete profitability breakdown based on sales value, returns, discounts, cost of goods sold, payment gateway charges, and marketing expenses.
It helps measure actual profit after deducting direct and variable expenses across branches and sales channels.

Purpose of the Report

The report highlights:

  • Gross Merchandise Value (GMV)
  • Discounts applied
  • Return deductions
  • Cost of Goods Sold (COGS)
  • Gross Margin
  • Payment Gateway Charges
  • Variable / Direct Expenses
  • Marketing Costs
  • Contribution Margin 1 (CM1)
  • Contribution Margin 2 (CM2)

This report supports accurate profitability tracking and financial planning.

Navigation Path

  1. Open Back Office
  2. Go to Reports
  3. Select Accounts
  4. Click Contribution Margin Report
  5. Apply Date Range, Branch, and Channel filters
Contribution Margin Report

Filters in the Report

Branch Selection

Use this filter to view:

  • Individual branch profitability
  • Consolidated multi-branch performance

Channel Selection

View margins for:

  • Offline store sales
  • Webstore sales
  • Marketplace integrations
  • Other channels

Date Range

Shows margin analysis within the selected period.

Loads the report with applied filters.

Report Breakdown

Field Description
Gross Merchandise Value (GMV) Total order value before discount and return adjustments
Return Value of returned products
Discount Total discount given to customers
Sales Net sales value after discount and return deductions
COGS Purchase/production cost of sold products
Gross Margin Sales – COGS
Payment Gateway Charges Fees deducted by online payment providers
Other Direct / Variable Cost Variable operational expenses tied to sales
Marketing Expenses Advertising and promotional spend
CM1 Gross Margin – Payment Gateway Charges
CM2 CM1 – Marketing & Variable Expenses

Contribution Margin Report Account Configuration

Click the Settings (gear) icon in the report to open the Account Configuration panel.

Back Office → Reports → Accounts → Contribution Margin Report → Settings Icon

Mappable Ledger Types

  1. Payment Gateway Charges
    Ledger accounts related to online transaction fees such as UPI, card payments, and net banking.

  2. Other Direct / Variable Cost
    Variable operational expenses directly associated with sales.

  3. Marketing Expenses
    Advertising, promotional, and campaign-related ledger accounts.

Saving Configuration

After updating the ledger mappings, select the Save button to apply and store the configuration changes.
This action ensures Contribution Margin values (CM1 and CM2) are calculated based on the configured ledger accounts.

This ensures the Contribution Margin Report automatically calculates CM1 and CM2 using the correct ledger mappings.

Contribution Margin Report

Benefits of the Contribution Margin Report

  • Clear understanding of profit after direct expenses
  • Branch-wise and channel-wise profitability comparison
  • Accurate mapping of payment and marketing costs
  • Insights for pricing, promotions, and financial planning
  • Complete visibility into CM1 & CM2 for business decisions

Export Options

  • Export All → Download report
  • Print → Print-friendly format
  • Email → Share report quickly
  • Schedule → Enable automated periodic delivery

Insights Supported

  • Branch-wise and channel-wise profitability visibility
  • Impact of discounts and returns on final margins
  • Influence of payment gateway fees on CM1
  • Effect of marketing and variable expenses on CM2
  • Actual net profit per reporting period
  • Useful for financial planning, budgeting, and cost control