Hi,
is there any way to show the profit per sales invoice?
Thanks!
No. And from an accounting perspective, that would make little sense. For sales of inventory items only, you might subtract cost of goods from sale price. And you can get that information from the Inventory Profit Margin report.
But that is a very limited view of profit, which must also account for proportional shares of applicable expenses. Additionally, once you depart from selling only inventory items, profitability is subject to more complex considerations.
True profitability determination is less an accounting function than a pricing function. And it can be very detailed, differing for every business situation, even within a single company.
I personally agree with everything you say, it is just that my employer wants to be able to see the profit for every invoice. I think his primary concern is that he will not be able to detect if ,say a profit from a single invoice is very low or even negative(loss). A possible bad scenario could be that a salesperson could create an invoice with a very low profit margin or even negative profit(loss) without being detected.
In my business(diamond wholesale and retail) this cannot be detected from profit margin report since there are dozens of invoices created each day and when summed that single negative invoice does not affect total profit margin that much.Plus checking every invoice for profit manually at the end of a period is time consuming process. Btw, i am talking about profit of only inventory items. Some kind of functionality to show Profit from Inventory Items per Invoice would be a great add-on. Thanks again!
Your situation comes down to comparing the sales price posted to Inventory - sales to the cost of goods posted to Inventory - cost for the same transaction. I haven’t tried it, but I would think you could construct a custom report that will show those two amounts on an invoice-by-invoice basis.
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I fiddled with Custom reports with no luck unfortunately. I dont know how to bring up Inventory-sales and cost on this report.I would be very thankful if you could help me with the query.