Buying is not selling
A monthly purchase can exceed sales to real customers. The difference accumulates in inventory while cash pays for the full order. Positive profit on sold goods does not necessarily mean positive cash flow.
A three-month example
Each month you buy 10 units at 600, sell 6 at 1,000 and pay 500 in other expenses. Over three months profit is 5,700, cash flow is minus 1,500 and 12 units remain at a cost of 7,200. With purchases paid first, peak funding needed is 7,000, not the final cash deficit of 1,500. These are fictional figures; stock condition and future saleability are not guaranteed.
Model assumptions
There is no opening stock or cash. Each month purchases are paid first, then sales occur, expenses are paid and commissions arrive. Prices and quantities stay constant. Returns, personal use and sales deductions are excluded; use the main ledger for those. Monthly sales cannot exceed monthly purchases in this simplified model.
You supply the company rules
The calculator does not establish whether a particular company requires autoship or qualifying purchases. It models the economics of your inputs and does not verify the legality or suitability of a contract. Review your own cancellation and return terms separately.