Gross Profit

The Gross Profit report compares what each item sold for with what it cost, invoice by invoice or grouped by item, item group, customer, sales person or month. The buying cost comes from the stock valuation rate at the time of delivery, so the result depends on accurate Purchase Receipts. It is the report that catches an item sold below cost, a discount that wiped out the margin, or a customer who only buys the loss leaders. A Nepali trader uses it to set prices after a supplier increase; a tour operator sees the margin per package after hotel and transport costs. A package sold for Rs 32,000 with Rs 20,000 of supplier cost shows Rs 12,000 gross profit.

Gross Profit = Selling amount - Buying amount (Qty x valuation rate); Gross Profit % = Gross Profit / Selling amount x 100

1. 01Go to Financial Reports > Gross Profit.
2. 02Set Company, From Date and To Date, and Group By Invoice, Item Code, Item Group, Customer or Monthly.
3. 03Read Selling Amount, Buying Amount, Gross Profit and Gross Profit % per row.
4. 04Sort by Gross Profit % to find items sold below cost or with the thinnest margin.
5. 05Check the valuation rate on the Delivery Note or Purchase Receipt when a buying amount looks wrong.
6. 06Revise selling prices in the Item Price list for items whose margin has fallen.

Open to check which items sell below cost or earn the best margin.

A tour package sold for Rs 32,000 with Rs 20,000 of supplier cost shows Rs 12,000 gross profit.