> For the complete documentation index, see [llms.txt](https://dukarun.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dukarun.gitbook.io/docs/money-and-reporting/understanding-the-financial-result.md).

# Understanding the financial result

## Why this matters

Stock, cash, customer debt, supplier debt, revenue, and margin describe different parts of the same business cycle. Reading them together prevents a busy sales day from being mistaken for cash or profit.

> **Interactive guide**
>
> [Start the interactive recap in Dukarun](https://app.dukarun.com/learn/understanding-the-financial-result). It points to the real financial views.

## Before you start

Complete at least one purchase and one sale. Use the same company, location, and date range when comparing figures. Your role must allow you to view financial information.

## Video

The task-specific walkthrough is being prepared. For now, watch this Dukarun overview.

{% embed url="<https://youtu.be/dfykDyK6Fs8>" %}

## Follow one transaction at a time

| Business action  | Stock     | Cash                               | Credit balance                | Sales result              |
| ---------------- | --------- | ---------------------------------- | ----------------------------- | ------------------------- |
| Credit purchase  | Increases | No change until payment            | Supplier payable increases    | No sale recorded          |
| Cash sale        | Decreases | Increases                          | No customer receivable        | Revenue and COGS recorded |
| Credit sale      | Decreases | Changes only for money applied now | Customer receivable increases | Revenue and COGS recorded |
| Customer payment | No change | Increases                          | Customer receivable decreases | No new revenue            |
| Supplier payment | No change | Decreases                          | Supplier payable decreases    | No new purchase or COGS   |

## Where to check

1. Open the **Dashboard** and review the current business summary.
2. Open **Money**, then **Credit**, to review customer receivables and supplier payables.
3. Open **Reports**, choose the same date range and location, then review **Revenue**, **COGS**, and **Margin**.
4. Open the **Inventory** report when you need stock quantity, stock at cost, potential retail value, or potential margin.

## What you should be able to explain

You should be able to connect each completed transaction to the stock, cash, credit, revenue, cost, or margin figure it changed. You should also be able to explain why a credit sale can increase revenue without increasing cash received.

## Related terms

[Revenue](/docs/glossary.md#revenue), [cash received](/docs/glossary.md#cash-received), [payable](/docs/glossary.md#payable), [receivable](/docs/glossary.md#receivable), [COGS](/docs/glossary.md#cogs), and [gross margin](/docs/glossary.md#gross-margin).

## Go deeper

[Review credit health](/docs/money-and-reporting/reviewing-credit-health.md) and [read sales, costs, and margin](/docs/money-and-reporting/reading-sales-costs-and-margin.md).

## If something does not look right

* Use the same date range and location on every screen you compare.
* Draft, pending, and voided records do not affect results like completed transactions.
* Reports refresh hourly, so a newly completed sale may not appear immediately.
* A cash movement is not automatically revenue or an expense. Check the business action that caused it.