Example report · Demonstration data
E-commerce finance audit example
Two product and channel rows need a cost review. An inventory payment pushes forecast cash below the planning buffer, while September contribution is below budget. Start with the payment schedule and source records, validate costs, then use the variance analysis to choose the next test.
The decisions to address first.
Product and channel contribution
2 negative rowsCheck fees, fulfilment and acquisition costs before expanding these product/channel combinations.
Inspect the evidence →Cash low point
$31,500Week 6; $8,500 below the planning buffer. Review inventory-payment timing.
Inspect the evidence →Checks awaiting records
2 areasCollect payout and inventory records to complete reconciliation and cost checks.
Inspect the evidence →Scope and source coverage.
The coverage column shows where a calculation is available and where records are needed.
Scroll horizontally to inspect each area.
| Area | Check | Inputs and basis | Coverage |
|---|---|---|---|
| Books | Trace settlements to bank receipts and clearing balances; check fees, refunds and funds in transit. |
Obtain the listed records to complete the payout-to-bank check. | Records needed |
| Reporting | Trace net revenue through contribution, fixed operating expenses and operating result. |
The calculation bridge is available; ledger and close schedules support the record checks. | Calculated |
| Margins | Compare SKU and channel net revenue with the costs included in contribution. |
Validate cost completeness and allocation rules before using the comparison for a pricing or spend decision. | Calculated |
| Cash and inventory | Review dated receipts, payments and the cash buffer; match inventory commitments to stock and cost records. |
Cash timing is shown in the forecast. Stock quantities and valuation need the inventory records listed here. | Calculated |
| Plan and forecast | Explain September plan variances and review the later forecast assumptions. |
Keep the monthly performance comparison separate from the dated cash forecast. | Calculated |
Findings, evidence and next checks.
Margins
Validate costs on the two negative-contribution rows.
Travel kit on Amazon and Gift set on TikTok Shop have negative contribution in the September report after the included product and channel costs.
Evidence and calculation
Scroll horizontally to inspect every column.
| Product and channel | Net revenue | Product and channel costs | Contribution | Contribution % |
|---|---|---|---|---|
| Travel kit · Amazon | $18,300 | $19,000 | −$700 | −3.8% |
| Gift set · TikTok Shop | $12,600 | $13,700 | −$1,100 | −8.7% |
Contribution = net revenue − COGS − fees − fulfilment/return handling − acquisition costs. Refunds are already deducted in net revenue.
- What it means
- The rows do not cover the product and channel costs included in the report; fixed operating expenses still remain.
- Next action
- Trace unit costs, refunds, fees, fulfilment and acquisition allocations to their records. Compare a revised discount, offer or cost assumption, with an explicit assumption for order demand, before increasing spend.Finance reviewer and marketing owner.
Basis: Check shared-cost allocations and complete product costs. A sensitivity that holds order volume fixed does not describe the demand response to a price change.
Cash and inventory
Match the stock payment to cash available on its date.
The lowest weekly closing cash falls below the planning buffer in a week with an inventory payment.
Evidence and calculation
- Week 6 closing cash
- $31,500
- Planning-buffer assumption
- $40,000
- Gap to the buffer
- $8,500
2026-10-05 – 2027-01-03 · USD · Week 6 starts 2026-11-09.
Closing cash = opening cash + receipts − inventory payments − operating payments.
$82,000 + $58,000 − $67,000 − $41,500 = $31,500.
- What it means
- The supplier payment creates a cash constraint within the forecast. Positive September operating results do not fund a later payment automatically.
- Next action
- Confirm opening cash, deposits, supplier balances and collection dates. Compare a smaller order or different payment timing, then check the slower-collections scenario before committing funds.Purchasing owner, finance reviewer and brand decision maker.
Basis: The forecast depends on receipt and payment dates. Its buffer is a model assumption, so the business needs its own reserve decision.
Plan and forecast
Explain the drivers of the September shortfall.
September net revenue, contribution and operating result are below plan. Lower fixed operating expenses partly offset the contribution shortfall.
Evidence and calculation
Scroll horizontally to inspect every column.
| Measure | Plan | Actual | Variance | Direction |
|---|---|---|---|---|
| Net revenue | $260,000 | $253,400 | −$6,600 | Unfavorable |
| Contribution | $72,000 | $67,200 | −$4,800 | Unfavorable |
| Fixed operating expenses | $43,000 | $42,000 | −$1,000 | Favorable |
| Operating result | $29,000 | $25,200 | −$3,800 | Unfavorable |
Operating result = contribution − fixed operating expenses. Contribution and operating-result variances overlap; do not add them as separate losses or savings.
- What it means
- The contribution variance feeds into the operating-result variance. Read the bridge between them rather than adding the connected shortfalls.
- Next action
- Check sales mix, discounts, refunds, unit costs and spending against the original budget assumptions. Separate timing changes from recurring drivers, then update the plan on a consistent basis.Finance reviewer and budget owner.
Basis: The summary identifies the variance, not its cause. Source detail is needed to attribute the change; operating result excludes interest and tax.
Books
Complete the payout-to-bank check.
The case files contain the management report but still need settlement exports, bank statements and clearing schedules for the reconciliation check.
Required records
Collect these records to complete the check:
- Payout or marketplace settlement transaction exports for the agreed period
- Bank and card statements for the matching dates
- Provider opening/closing balances, holds and transfers in transit
- Clearing-account ledger detail and reconciliation schedules
- What it means
- These records connect sales, refunds, fees and provider balances to bank receipts. They separate posting differences from cash that is still in transit.
- Next action
- Obtain the listed records for matching dates. Trace settlement lines to transfers and bank receipts, roll forward provider balances and document each outstanding item.Bookkeeping preparer, reconciliation reviewer and record owner.
Basis: Check matching periods and provider balances before treating a difference as a posting error.
Cash and inventory
Reconcile stock movements and landed cost.
The report contains COGS and planned inventory payments. Stock counts, movement records and landed-cost documentation are needed for the quantity and valuation checks.
Required records
Collect these records to complete the check:
- Period-end stock counts and inventory movement records
- Purchase invoices, freight/duty allocations and landed-cost policy
- Inventory and COGS ledger detail with cost-layer support
- Return, restocking and write-off records
- What it means
- COGS reflects the cost of units sold; a supplier payment follows cash terms. The stock and cost records link those views without treating the next order as an expense of the current period.
- Next action
- Obtain counts, purchase invoices and cost-layer support. Reconcile opening stock, receipts, sales, returns and write-offs to closing quantities, then apply the agreed landed-cost policy.Inventory owner, bookkeeper and finance reviewer.
Basis: A purchase payment cannot establish stock quantity or the cost of units sold. Base any adjustment on the stock movement and cost records.
Action sequence.
Collect the records first, validate the calculations, then make the operating decision.
Days 1–7 · Obtain the source records
Collect settlement, bank, clearing, stock-count and cost records for the agreed dates. Assign an owner and follow-up date to each outstanding item.
Record owner, bookkeeper and inventory owner.Depends on: Agreed coverage, record access and reporting cutoffs.
Days 1–7 · Check the next stock payment
Confirm the supplier payments and collections around the forecast low point. Compare order size and payment timing before the commitment.
Purchasing owner, finance reviewer and brand decision maker.Depends on: Opening cash, supplier terms and receipt dates.
Days 8–14 · Validate the margin inputs
Trace costs, refunds and allocations on the negative-contribution rows. Document the cost basis and keep unresolved inputs visible.
Bookkeeper, finance reviewer and marketing owner.Depends on: Order and cost records, including the payout and inventory checks.
Days 15–21 · Explain the plan variance
Build the September variance bridge. Attribute changes in sales, contribution and fixed costs to supported drivers on one reporting basis.
Finance reviewer and budget owner.Depends on: Period records, reviewed cost allocations and original budget assumptions.
Days 22–30 · Choose the test and review measure
Select a supported pricing, marketing or inventory option. Define the test, owner and measures for follow-up; agree any implementation work separately.
Brand decision maker and the relevant operating owners.Depends on: Checked inputs, understood cash commitments and approval of the operating decision.
Complete the source record set.
Match the records to the report period and settlement cutoff.
For the first conversation, describe your channels, current reporting and the decision ahead. Agree the period and access method before transferring financial records.
Report basis.
- Contribution is before fixed overhead, interest and tax. Operating result deducts fixed operating expenses and excludes interest and tax.
- September performance and the 5 October 2026–3 January 2027 cash forecast use separate periods and bases. Monthly operating result is not forecast cash receipts.
- The forecast uses assumed collection dates, supplier payments and a planning buffer. Review those inputs before committing cash.
- The 30-day action sequence follows the dependencies in this report: obtain records, check commitments, validate costs, explain performance and choose a test.