Accounting

Gross Profit

إجمالي الربح

📖 Definition

Gross profit is revenue minus cost of goods sold (COGS). It shows how much money a business makes from selling products/services before deducting operating expenses, taxes, and interest.

In everyday Saudi accounting work, gross profit matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.

📖 التعريف بالعربية

إجمالي الربح هو الإيرادات مطروحاً منها تكلفة البضاعة المباعة. يُظهر مقدار المال الذي تجنيه المنشأة من بيع المنتجات/الخدمات قبل خصم المصروفات التشغيلية والضرائب والفوائد.

💡 Example

A retailer with SAR 1M in sales and SAR 650K in COGS has a gross profit of SAR 350K (35% gross margin).

تاجر تجزئة بمبيعات مليون ريال وتكلفة بضاعة 650 ألف لديه إجمالي ربح 350 ألف ريال (هامش إجمالي 35%).

When this term matters

Invoices

Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.

Reports

Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.

Compliance

Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.

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