How is net income calculated?
The Net income Home page metric uses the same account-based calculation as the simplified income statement. It displays the current month’s net income and a chart for the 12 months that include the current month.
QuickStart calculates the values as follows:
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Gross profit = Revenue - Cost of revenue
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Net operating income = Gross profit - Operating expenses
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Net non-operating income = Non-operating income - Non-operating expenses
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Net income = Net operating income + Net non-operating income
The metric includes posted general ledger amounts assigned to the applicable revenue, cost of goods sold, expense, non-operating income, and non-operating expense account types for the displayed accounting periods. It does not include activity assigned to other account types.
The metric compares the current month’s net income with the previous month’s value. Select the report link in the metric’s content to open the income statement and review the contributing account balances.