If you use product and service records, to keep track of how much profit you make on each item, use the Profit Analysis report. When running the report, you can choose to run a summary of your profit or a detailed report. The summary report shows you the net, cost and profit amount and the percentage of the profit made for each transaction as well as an overall total. The detailed report also includes a breakdown of the profit for each item sold. This is particularly useful If you sell different products or services on the same invoice, credit note or quote. In order for the report to calculate the profit correctly, you must have a cost price and a sales price. As you don’t enter a cost price for service records, therefore, the profit always shows as 100%. If you want to enter a cost price, you should use product records instead. The profit calculates as follows: - Profit (Amt) = Sales price – Cost price
- Profit (%) = Profit value / Sales price x 100
The profit calculates based on the cost and sales price in use at the time of posting the invoice, credit note or quote. If you change the cost or sale price after posting the transaction, this doesn’t affect the profit calculation. Example > You buy a product with a cost price of 4.50 which you then sell for 12.00. The profit calculates as follows: 12.00 – 4.50 = 7.50 7.50 / 12 × 100 = 0.625 × 100 = 62.5% |