Profit & Loss

What is this page?

The Profit & Loss (P&L) page is your complete financial statement for your TikTok Shop. It can show profit on either a settlement basis or an accrual basis, and it keeps product sales, customer-paid shipping, shipping costs, TikTok fees, COGS, overhead, and ad spend visible as separate components.

Think of it as a financial report card: Revenue tells you how much came in, Expenses tell you how much went out, and Profit tells you what you kept.

Understanding the P&L Structure

The P&L page presents metrics in a hierarchical tree. In accrual view the visible order-side components form the profit bridge. In settlement view, TikTok-side rows also explain amounts already included in the settlement anchor, so they should not be subtracted a second time.

Revenue
  - Gross Sales (product-only, before discounts)
  - Discounts (subtracted)
  = Net Sales

Shipping
  + Customer-paid shipping
  + Shipping costs / TikTok adjustments (signed)
  = Net Shipping

Cost of Goods
  - COGS
  = Gross Profit (Net Sales - COGS)

Operating Expenses
  - Shipping Costs
  - FBT Fees
  - Platform Fees & Taxes
      - Referral Fee
      - Co-funded Promotion Fee
      - Other Fees
  - Affiliate Commissions
      - Sales Commission
      - Ads Commission
  - Sample Costs
  - Refunds & Returns
  - Manual Adjustments
      - Manual Income (adds to profit)
      - Manual Expenses (subtracts from profit)
  = Operating Profit

Below the Line
  - Net Ad Spend
  = Net Profit

(Platform Subsidy is shown for reference only -- it is already included in your sales revenue, so it is not added here.)

Key Metrics on This Page

Revenue Section

Gross Sales

• What it shows: Total product sales at the original listed price before any discounts.
• Formula: Sum of (Original Price x Quantity) across all orders
• Important: This is merchandise only. It does not include shipping. If you sold a $25 item with a$ 5 discount and charged $4 shipping, Gross Sales records$ 25; the discount and customer-paid shipping are separate rows.

Shipping Revenue

• What it shows: The total amount customers paid for shipping on their orders.
• Important: This is what customers were charged for shipping, not what it cost to fulfill the shipment. Product and Product Overview breakdowns label it Customer-paid shipping.

Discounts

• What it shows: Total seller-initiated discounts applied to orders.
• Important: Only includes discounts funded by you (the seller). TikTok platform discounts from co-funded promotions are not included here -- TikTok's contribution appears as Platform Subsidy, and your share of co-funded campaigns appears under Platform Fees as Co-funded Promotion Fee.