Hey I know this is probably a dumb question as I delve deeper into Manager… But all I want to do at the moment is run a report of some kind that shows be the total of $ Sales invoices minus the $ Cost of the Inventory Items.
I.e Total Sales Invoice of $15,000 - Inventory cost of items in those sales = $? etc.
Have you checked the inventory profit margin report?
Yes I have, it was the first thing I looked at… But is shows all 0’s and I don’t understand why… All Inventory Items used in Sales Invoices have had a cost assigned to them… I.e… Service1 cost 20.00 sell 40.00 etc…
Hence the question… Obviously I am doing something wrong as Manger is a very nice product.
It appears that you are either trying to use Inventory Items for Services type sales or have set those Services up as non-inventory items, if yes, then you aren’t going to get any report like Sales - COGS for either of them.
Inventory Items is for products, things you can count on the shelf. You can’t count Services.
Yes… Was starting to think that myself… Sigh so how can I remedy this issue?
Is there a Services Item? Sorry for being such a pain. I am normally good with software and know what I want… I gather. I am a small IT services business… 90% of my product is services… I.e. hourly rate… and some hardware/software products.
But in saying that… I have set products as well for Managed IT Services… I.e, x amount per month for per device etc.
These can be set up under Settings > Non Inventory Items but wont give any reports.
I must admit I am lost… Sell x widget be that service or hardware… It is still an item with a cost and a sell price and put down as the number sold… 3 x hours for x services at x price and or hardware at x price with a cost of?
Yes creat non inventory service items and use them.
Unfortunately Manager.io doesn’t have any report on non inventory items. If you have specific account for every non inventory item, you could eat the total sales of non inventory items (Amount only) in that account.
Non inventory items have a lot of uses. For example I use them to select applicable Withholding taxes and discounts. I just link them to the relevant accounts. So such report may end up to be a redundant report.
Most users are interested in the amounts related to Non inventory items for which an associated account can give you readily.
A hardware item you can purchase at a cost so you sell x, a service you can’t purchase so it doesn’t have a cost.
If you provide a service which requires 3 hours, you can charge (sell) those 3 hours but you never purchased the hours to sell.
Wow. OK… But a service does have a cost… Time, wages, etc etc? I am totally surprised that this does not have a simple sell x for $, x cost $… so profit for x was. ?? Seems like basic sense to me?
No, the service is what you are selling (repairing IT equipment), it doesn’t “cost” you to sell that service as you haven’t purchased anything. The business incurs operating expenses which it recovers via the service charges. So what you have is sell x for $$$ and less operating expenses = profit/loss.
Lets say the business’s operating expenses are 750 per week. If you sell zero services then you have a loss of 750 for the week, however if you sell 30 hours @ 37.50 then you have 1125 - 750 which = 375 profit for the week.
Lets say your business opens 40 hours per week and costs 750 to run and you want to recover those costs with half a weeks service charging - so 750 / 20 = 37.50 per hour.
Non-inventory items are just shortcuts for entering information on commonly sold things, whether physical goods or services. They don’t allow you to track anything, because the “things” they record do not exist in inventory. Thus, they have no existing cost from an accounting perspective.
Yes, you may incur costs to deliver these non-inventory items. But their value in your accounting records does not exist until the moment you sell them. This is in contrast to hard goods in inventory, which you must first purchase and which therefore do have value in your accounting system.
Note that I mentioned physical goods as non-inventory items. Such things can be problematic. It is only appropriate to use non-inventory items for physical goods in situations where you cannot readily count the items. For example, you might buy a can of compressed air for blowing off keyboards. That would normally be expensed as a shop supply. You would not sell a can of compressed air to a customer. But you might decide to recover the cost of the air by charging the customer via a non-inventory item named Shop supplies. That way, each customer pays a little bit towards your costs.
For more about non-inventory items, read the Guide: Manager Cloud.
Thank you all for your info and advice. I total understand what you are all saying.
I am still a little surprised that there is not a simple report to show you… Sell 10 x Items @ $10 each = $100.00. My cost of each item is $5.00 x 10 = $50.00, so I have made $50.00 in simple terms. Say mice for the item.
I also understand that this would not be the true cost / profit as other expenses are not taken into account.
There is for the example you just gave, as @Abeiku first told you: the Inventory Profit Margin report. But to use it, you must treat the items as inventory. But throughout this thread you have been writing about services and items that are not inventory.
That is correct. But you also first asked about subtracting cost of goods from sales. That is only the first step. Allocation of other expenses occurs in the Profit and Loss Statement.
If these concepts are alien to you, I recommend learning about basic accounting before trying to use a relatively sophisticated double-entry accounting program. Like all tools, you need to know its purpose before you can use it properly.