Description
Calculate supplied return-adjusted revenue, cost and margin amount.
Business metrics depend on event definitions, time windows, revenue and cost bases, and reporting scope. Observed sales during stockout do not by themselves verify latent demand, while a return contribution depends on which costs were already recognized. Local flags and signed balances are not a complete profitability or causal analysis.
Calculate supplied return-adjusted revenue, cost and margin amount.
When to use this tool
Use Order Line Return Adjusted Margin when you already have grossRevenue, returnedRevenue, originalCost, recoveredReturnedCost and need to calculate supplied return-adjusted revenue, cost and margin amount.
How to use the tool and how it works
- Enter grossRevenue, returnedRevenue, originalCost, recoveredReturnedCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read netRevenue, netCost, margin. Use the output convention below.
Require nonnegative amounts with returnedRevenue<=gross and recoveredCost<=originalCost; return gross-returned, original-recovered and gross-returned-original+recovered.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| grossRevenue | Gross Revenue | Required. Finite number; minimum 0. |
| returnedRevenue | Returned Revenue | Required. Finite number; minimum 0. |
| originalCost | Original Cost | Required. Finite number; minimum 0. |
| recoveredReturnedCost | Recovered Returned Cost | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| netRevenue | Net Revenue | Required. Finite number. |
| netCost | Net Cost | Required. Finite number. |
| margin | grossRevenue-returnedRevenue-originalCost+recoveredReturnedCost, in currency units rather than a margin fraction. | Required. Finite number. |
{
"input": {
"grossRevenue": 200,
"returnedRevenue": 50,
"originalCost": 120,
"recoveredReturnedCost": 30
},
"output": {
"netRevenue": 150,
"netCost": 90,
"margin": 60
}
}Limitations and assumptions
- Margin is a signed currency amount, not a fraction or percentage. No returns, cost recovery, accounting treatment or actual profitability is verified.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile source transactions, inventory and cohort records with the full metric definitions. Use complete forecasts, accounting and study designs where needed; individual contributions and supplied scenarios do not establish performance or causal effects.
References
Similar or alternative tools
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