Many commercial leaders read the first line of the P&L carefully and hand the rest to finance.
I understand why. The sales line is the one we are judged on. But in my experience, the lines below it are where most commercial decisions actually show up.
These are the five I read every month.
Gross sales. What we invoiced to the distributor. It tells you what went into the trade, not what patients used.
Net sales. Gross sales after discounts, rebates and returns. This is the real net price you achieved. It is also where month-end deals quietly appear.
Gross margin. Net sales minus the cost of goods, including bonus goods. It tells you whether the volume was worth having.
Commercial spend. Field force, promotion, events, distributor support. What it cost to win the sales.
Contribution. What is left after that. What the country actually adds to the business.
Three habits help.
- Read net sales before gross sales.
- Ask why each line moved, not only whether it hit budget.
- Go through it with the finance manager, then share the story with your managers. When first-line managers see how their choices land on these lines, the conversations change.
“Sales is the first line of the P&L, not the last.”
Lesson 2 of 17 in Step 3: Money, pricing and forecast, with the full guide and a checklist for this week.