# Inventory Profit Margin Report

Is there a way to show the Total Margin also in the Inventory Profit Margin report since Total Purchases, Sales and Profits are already there?

If a figure did appear in the total line under Margin , wouldnât it equal âAverage Marginâ not a Total Margin. What would be the point in seeing the percentages added up?

@Brucanna I must say sorry for terming it as âTotal Marginâ, yes, it is a percentage. Now coming to your question of âWhat is the point?â As a promoter of a small company, I am not interested in individual inventory item profit margins. That is the worry of the sales person. Especially when you have hundreds of item, it becomes the headache of sales person as to ascertain the profit margins for individual item for his incentive calculations. My concern would be the profit margin the company has made from all these hundred items. Let me clarify, I do not mind if an individual item has not made enough profit margin and some other has made margins beyond. From the report, I would mainly look at the total figures only. Here, in the present report format, we have the âTotal Salesâ and âTotal Profitâ. To get the âGross Profitâ made by the company, we need to use the calculator to see the margin percentage by dividing âTotal Profitâ by âTotal Salesâ. We could give rest to the calculator if that is shown in the report. Now, do you agree?

I have supported the showing of Average Margin and retiring the calculator. The âWhat would be the pointâ comment meant the Percentages were being accumulated so there was a gross figure, perhaps 19,547.21 % - meaningless. Hope @lubos is listening

1 Like

By just dividing the âTotal Marginâ by âTotal Salesâ would give the answer!
On a lighter sense, how come 19,547.21% as margin? I would like to join your company as an employeeâŚ haha

I was trying to illustrate what would happen if you just added up the individual product percentages

In the latest version Iâve improved the report so it shows overall profit margin as well.

But Iâve noticed some issues with the accuracy of this report if you deal with negative inventory.

For example, if you purchase goods after selling them, on those items it might appear you make 100% profit margin if period for the report ends before sold goods are purchased.

I have some ideas how to fix this issue but this problem hasnât been reported by anyone. Maybe users who are purchasing after selling donât care about profit margin report as they always purchase âon orderâ and set their prices based on predefined margins.

1 Like

The only issue that I have noticed with inventory profit margin report is that it does not show inventory kits in this report.

5 posts were split to a new topic: Inventory Profit Margin report format bug