> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sourcemedium.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# What is the Exclude $0 Order feature?

> How the Exclude $0 Orders feature removes zero-net-revenue orders from Executive Summary and Retention reporting to improve acquisition metric accuracy

SourceMedium's Exclude \$0 Orders feature removes otherwise-valid orders with `Net Revenue` of \$0 from Executive Summary, YoY Performance, and Retention / LTV reporting when the feature is enabled. These orders are not removed from deep-dive pages such as Orders Deep Dive or Customer & Product modules.

<Accordion title="Quick Note: Gross, Net and Total Revenue definitions">
  * Gross Revenue = `line item price` X `quantity`
  * Net Revenue = `Gross Revenue` - `discounts` - `refunds`
  * Total Revenue = `Net Revenue` + `net shipping` + `net taxes` + `net shipping taxes`
</Accordion>

<Accordion title="A practical example (click to expand me)">
  Your business generates \$1,000 in Gross Revenue in the month of May, from 10 orders of \$100 each. Nine regular orders have \$5 shipping and \$10 tax. One promo order has a \$100 product discount and \$5 shipping, but no tax.

  The promo order has \$0 Net Revenue but \$5 Total Revenue. When Exclude \$0 Orders is enabled, SourceMedium removes that order from Executive Summary and Retention reporting.

  Let's also assume that you've spent \$500 on marketing in the month of May.

  | Metrics                | Exclude \$0 Order Turned Off                   | Exclude \$0 Order Turned On                    |
  | ---------------------- | ---------------------------------------------- | ---------------------------------------------- |
  | Spend                  | \$500                                          | \$500                                          |
  | Orders                 | 10                                             | 9                                              |
  | Gross Revenue          | \$1,000                                        | \$900                                          |
  | Net Revenue            | \$1,000 - \$100 (discount) = \$900             | \$900                                          |
  | Total Revenue          | \$900 + \$50 (shipping) + \$90 (tax) = \$1,040 | \$900 + \$45 (shipping) + \$90 (tax) = \$1,035 |
  | AOV (Net Rev / Orders) | \$900/10 =  \$90                               | \$900/9 =  \$100                               |
  | CPO (Spend / Orders)   | \$500/10 = \$50                                | \$500/9 = \$55.56                              |
  | ROAS (Net Rev / Spend) | \$900 / \$500 = 1.80                           | \$900 / \$500 = 1.80                           |
</Accordion>

## Why turn on the Exclude \$0 feature -  the benefits & implications

There are many scenarios in which an otherwise-valid order could come out to a Net Revenue of \$0, such as:

* fully discounted orders
* free promo orders
* sample or comp orders

<Note>
  Fully refunded orders are usually excluded by SourceMedium's standard valid-order payment status rules. The Exclude \$0 Orders feature is most relevant for orders that otherwise remain valid but have \$0 Net Revenue, such as samples, fully discounted orders, or free promos.
</Note>

These orders aren't necessarily useful for macro-level KPI reporting. Excluding them can reduce inflated order counts and keep metrics such as AOV, Cost Per Order/Acquisition, and retention analyses focused on revenue-generating orders.

### Additional information and related articles

* [Valid Orders](/help-center/core-concepts/data-definitions/is-order-sm-valid)
* [Revenue Fields](/help-center/core-concepts/data-definitions/revenue-fields)
* [Why don't the Executive Summary and Shopify's Sales Report match?](/help-center/faq/data-faqs/why-dont-the-executive-summary-and-shopifys-sales-report-match)