Buy 100, sell 10
Fictional example: purchase 100 units at 600, sell 10 at 1,000 and pay a 2% sales deduction. Sales profit is 3,800; change in cash is −50,200; closing inventory at cost is 54,000. These figures do not contradict each other. The 54,000 is inventory at cost, not available cash or guaranteed future sales proceeds.
What a return changes
A customer return is linked to its original sale. Cash and revenue decrease; inventory is restored at that sale’s original cost. If the returned item cannot be resold, enter a separate write-off. Refunding the sales deduction follows the explicit scenario setting.
Personal consumption is not a sale
Taking goods for personal use reduces inventory at cost. It is an owner withdrawal, not cash income or the cost of customer sales. MLMProfitCalc separately displays profit less personal withdrawals.
A reconciliation that must balance
Change in cash equals profit plus opening inventory minus closing inventory minus personal withdrawals. A calculation that does not reconcile should not be presented as a verified result.