@Tut, thanks for your time.
Thus, if I understand you correctly:
- I sell an item with a profit of 100, this is accounted in the IPM report.
- The same item is returned, reversed, credited and the margin in the report remains 100?
Hmmm
You can certainly question the purpose and design of the report. But that is how it works.
I do not know if it’s correct practice, but it works using the invoice (a pseudo Journal Entry).
December 2020:
- Invoice is nihil (not influent)
- Inventory sales is adjusted
- Inventory Profit Marging report shows the right margin
- Amount is parked in a Current Liabilities account
January 2021:
- Invoice charged with remaining purchased items
- including a line with reversed Current Liabilities (-100)
All kind of critics are accepted 