Recommendations for GMV Report Calculation in B2C Commerce

Where we can fetch the GMV Report?

We can fetch the GMV Report from the Business Manager by following this path:
Business Manager > Administration > Operations > GMV Reports
For additional information, please see Gross Merchandise Value.

How does order status affect GMV?

• In GMV Reporting, the CREATE action corresponds to an order that has been successfully PLACED
  (order status: NEW, OPEN, or COMPLETED)
• An order in the "Created" status (where payment is not yet authorized) is logged as CREATE_FOR_AUTH and does not count
• However, the customer has the option to change the order status to either "Cancel" or "Replace" at their discretion, depending on their specific order fulfilment workflow.
• Once an order reaches the CREATE action in GMV reporting (order status: Placed), it is permanently counted towards GMV entitlements
• If an order is later cancelled, a new entry with the action CANCEL is created in the Order Journal, but the original CREATE entry remains and is still billed
• Should a customer modify a confirmed order, such as altering quantities or adding/removing products before shipment, through means external to the platform, and these changes do not reflect in the Order Journal, they are not considered since we lack awareness of them. 
• Returns, being an external action, occur independently of the Platform and do not alter the status of an order in the Order Journal. Consequently, they are not deducted.
• GMV FAIL ACTION: Occurs during the authorization phase. These are never counted towards GMV.
• GMV CANCEL ACTION: Occurs after an order is placed. These are counted because the platform successfully processed the transaction.

Order Scenarios and their related states in the Commerce platform vs. GMV Journal:

Which entities count towards GMV?

Broadly speaking, anything that contributes to customer sales is included in GMV. This encompasses products and services sold, while items such as shipping, taxes, and other order-level line items not directly sourced from the Storefront catalog are excluded from the calculation.

ITEM TYPE:

The following ITEM TYPE’s are counted towards GMV Report:

• PRODUCT
• ADJUSTMENT
• GIFTCERT
• SERVICE

The following ITEM TYPE’s are not counted towards GMV Report:

• SHIPPING
• GIFTCERT_REDEEMED
• TAX

ACTION:

The following ACTION is counted towards GMV Report: 

• CREATE

The following ACTION’s are not counted towards GMV Report:

• CREATE FOR AUTH
• FAIL
• CANCEL
• REPLACED/REPLACEMENT

Formula for Calculating GMV in the GMV Report: 

Sum of Create (product price+service+adjustments+Gift Certificates) = GMV

Based on the above, the intended meaning is as follows:

After reviewing all the records with ACTION equal CREATE and ITEMTYPE as PRODUCT, ADJUSTMENT, GIFTCERT, and SERVICE:

• Aggregate all the values in the TOTAL column to determine the Total Revenue.
• Aggregate all the values in the TAX column to determine the Total Tax.

Considerations /Recommendations :

• The TOTAL column in the GMV reflects the NET price of an item. It's essential to note that this is distinct from the site's actual taxation setting (Gross or Net), which might cause confusion.
• It's crucial to clarify that GMV is not calculated based on the TAX for an item or service. The total in the GMV report does not represent the total amount the customer pays but rather the total used for GMV calculation on our end. In both sales and VAT tax scenarios, it's important to note that the TOTAL column does not include taxes.
• It is advised not to subtract TAX from the TOTAL column, even if the unit price of their products includes TAX, as this adjustment has already been accounted for in the GMV report.
• In any event, it's essential to recognize that GMV and CCAC rely on distinct data sources, and variations in results may stem from discrepancies in rounding methods. It's crucial to emphasize that CCAC is not categorized as a "financial tool"; GMV consistently serves as the authoritative source of truth.
• An ORDER is counted when it’s successfully placed and persisted to the B2C Commerce platform database. Generally, an order is counted when an order confirmation page indicates a successful order. If the order is changed such as when it’s canceled, the Reports & Dashboards app isn’t updated.
• The discrepancy amounts to of minimal number compared with the total revenue over a year/ couple of years, easily attributable to CCAC's use of a single daily exchange rate versus the inter-day rates employed in GMV reporting.
• Once an order is "created," it contributes to GMV. Cancelling the order cannot decrease GMV.

For more information, see GMV.