The Invoice Details and Profit Margin report is an analytical report that helps you understand the profitability of each sales invoice and each line item within it accurately, based on the actual average product cost in the system.
This report is designed to analyze sales invoices only.
First: How is Cost of Goods Sold (COGS) calculated?
The cost of goods sold in the report is calculated using the average product cost.
How do you find the average cost for any product?
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Navigate to Products and Costs from the dropdown menu.
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Click on View next to the desired product.
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You will find the average cost approved in the system next to the location name.
This average is what is used to calculate the cost of goods sold in the report.
Second: Which invoices appear in the report?
The report displays only:
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Sales invoices
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That have been approved
And does not include:
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Draft invoices
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Invoices pending approval
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Any other documents other than sales invoices
Third: What does the report display?
The report displays detailed data for each line item within the invoice, including:
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Invoice number
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Line item number within the invoice
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Product name
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Customer name
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Issue date
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Quantity
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Unit price (excluding VAT)
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Discount percentage per line item
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Discount amount per line item
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Total revenue before VAT
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Cost of Goods Sold (COGS) per line item
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Profit margin percentage per line item
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Total profit margin for the entire invoice, calculated by subtracting the Cost of Goods Sold (COGS) from the total revenue before VAT for each line item and then summing them.
Fourth: How is profit margin calculated?
Profit margin for each line item is calculated as follows:
Profit Margin =
(Total Revenue before VAT – Cost of Goods Sold)
÷ Total Revenue before VAT
× 100
Very important:
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The margin is calculated after discount
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If the percentage is negative → this means there is a loss
Fifth: What happens in special cases?
1) Partially Paid Invoice
This does not affect the report, because the report is based on the “approved” status, not the payment status.
2) Services
If the product is a service, it will show:
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Cost of goods = zero
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And thus the profit margin shows 100% (if there is no discount)
3) Credit Notes
Credit notes do not affect this report.
Sixth: Available Filtering Options
You can filter the report based on:
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Invoice number (to search for a specific invoice)
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Customer name (entered manually)
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Start and end date (based on invoice issue date)
Note:
You cannot filter by location.
Seventh: Export
You can export the report to:
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Excel
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PDF
And the data will be exported with the same filters applied to the report.
If you want to calculate the total profit margin for all invoices within a certain period, you can export the report to Excel and easily perform the sum.
Eighth: Required Permissions
For the report to appear to the user, they must be granted the permission:
“Invoice Details and Profit Margin Report”
How to grant permission:
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Go to Settings
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Then Users
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Select Manage Positions from the top
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Click Edit next to the desired position
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Enable the report option
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Click Save
When do you use this report?
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Analyze the profitability of a specific customer
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Know the profitability of a specific product
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Discover line items that incur losses
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Compare performance between time periods
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Evaluate pricing and discounts
- Export sales invoices with their details and the line items within them
Important Alert
If you notice that the profit margin is unreasonable:
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Check the average product cost
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Verify the accuracy of previous purchase transactions
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Ensure the product is an inventory item and not a service (if you expect to see a cost)
