When you look in the dashboard under Reports → Product Performance, you can see exactly how much revenue each product has generated. But how does the system actually know that? Especially when someone orders a menu that contains multiple products?
In this article, we explain step by step how this calculation works.
Why this calculation is necessary
Many hospitality businesses sell menus or combo deals. Because these combinations contain several products with possibly different VAT rates, the system must divide the price fairly among all components. This is required to calculate the correct VAT for each product and report it accurately.
Example:
A Menu costs 12 euros and contains:
• A burger (sold separately: 8 euros)
• Fries (sold separately: 3 euros)
• A drink (sold separately: 4 euros)
Bought separately, this would cost 15 euros — but as a menu you pay 12 euros.
The system must then determine:
How do we fairly divide those 12 euros across the individual products?
This is important because:
• Each product must show its correct revenue in the reports
• Each product must have the correct VAT calculated
• You want to see which products are truly performing well
Step 1: The system checks the original prices
The system first looks at what the individual items normally cost.
In our example:
• Burger → 8 euros
• Fries → 3 euros
• Drink → 4 euros
Total: 15 euros
Step 2: Each product receives a percentage of the menu price
Now the system calculates what percentage of the menu belongs to each product.
Calculation:
• Burger: 8 / 15 = 53.33%
• Fries: 3 / 15 = 20.00%
• Drink: 4 / 15 = 26.66%
Step 3: The menu price is split according to these percentages
The menu costs 12 euros → the system divides it:
• Burger: 12 × 53.33% = 6.40 euros
• Fries: 12 × 20% = 2.40 euros
• Drink: 12 × 26.66% = 3.20 euros
Total = 12 euros
So the total revenue always matches exactly what the customer paid.
Step 4: VAT is calculated separately per product
Sometimes menu items have different VAT rates. In that case, the system recalculates VAT per item.
Example (illustration using common VAT rates):
• Burger → 7%
• Fries → 7%
• Cola → 19%
The system first takes the revenue portion assigned to that product and then calculates the correct VAT based on that share.
Each product therefore gets its own VAT line in the report.
Why differences can appear
Not everything in an order is a standalone product. Many elements are addons or options, such as:
• Extra sauce (€0.50)
• Large size (+€2)
• Extra topping
These addons do not have their own product row in the report, but they are included in the total price.
This means:
• They increase the total price of the menu or product
• That increased amount is then proportionally distributed across the products
• The addon itself does not appear as a separate line in the report
What is the result?
Products can appear to have more revenue than their original base price.
Example:
A Burger Menu normally costs 12 euros, but the customer adds 5 euros of extras → total becomes 17 euros.
Those extra 5 euros are fully attributed to the Burger Menu, because there is no separate product to assign the addon to.
This makes it look like the Burger Menu generated 17 euros in revenue, even though the base price is 12 euros.
Why VAT differences may occur
Because the system rounds each menu component separately (for example to 2 decimals), small differences can appear.
A single rounding may only be €0.01, but if you:
• Sell hundreds of menus
• Use different VAT percentages
• Have many addons
… then these tiny rounding differences can add up — sometimes to a total difference like €2.85.
This is normal and part of this calculation method.
Summary
Product Performance is calculated as follows:
• The system checks the original prices of all products inside a menu
• Each product gets a percentage based on those prices
• The menu price is split according to those percentages
• Each product receives revenue + VAT based on its share
• Addons are assigned to the product they belong to
• Small rounding differences may add up to a small total discrepancy