How are margin and profit calculated in sales reports?

The margin determines the difference between the selling price of a specific item and the purchase price of that item. Profit is the excess of sales over general expenses. Both of these figures are available in the financial reports Sales in detail 2.0 and Bar – Sales. In this article you will learn how they are converted and what affects the results obtained in the reports.

How are margin and profit calculated?

In both reports, the values are converted as follows:

Profit: net value (sold item from the bar) – purchase price of the item (value entered in the delivery in the Net unit price field when adding the delivery)

Margin: profit/net value x 100 = [%].

Margin and profit in Sales in details 2.0 report

The report is available in the Reports -> Finance -> Sales in details 2.0 tab:

In the report, each product or service sold is shown on a separate line:

To make the margin and profit columns visible, click on the Select additional information button, select the appropriate columns from the list, and click on the Save button:

Example 1.

We have an article WATER in stock, where its selling price is EUR 3, so the net unit selling price is EUR 2.78. Entering a delivery for this product, the net unit price is EUR 1.50 (EUR 1.62 gross).
After realizing the sale of one unit of WATER and paying in cash, the system calculates the profit and margin as follows:

Profit: net value – purchase price of the item = 2.78-1.50= EUR 1.28

Margin: profit/net value x 100 = 46.04%

Example 2.

After realizing the sale of one piece of WATER and paying with the payment form BONUS, the system does not calculate the margin and profit, the values in the columns remain empty:

Example 3.

Selling one item with different selling price:

Margin and profit is calculated separately for each line.

Example 4.

When the sale of two pieces of WATER is realized and paid with the payment form BONUS and cash, the system calculates the value of margin and profit only for water sold by paying with cash:

Margin and profit in the Bar – Sales report
The report is available in the Reports -> Bar -> Sales tab:

In the report, the sold product or service is visible in one line collectively. In the report, the margin and profit columns are visible by default:

Example 1.

We have an article WATER in stock, where its selling price is EUR 3, so the net unit selling price is EUR 2.78. Entering a delivery for this product, the net unit price is EUR 1.50 (EUR 1.62 gross).
After realizing the sale of one unit of WATER and paying in cash, the system calculates the profit and margin as follows:

Profit: net value – purchase price of the item = 2.78-1.50= EUR 1.28

Margin: net value – net unit price of purchase x 100 = 46.04%

Example 2.

After realizing the sale of one item of WATER and paying with the payment form BONUS, the system calculates the value of margin and profit to 0:

Example 3.

Selling one item with different selling price:

Profit: net value (2.78 + 1.85) – purchase price of item = 4.63 – (1.50+1.50) = PLN 1.63

Margin: profit/net value x 100 = 1.63/4.63 x 100= 35.21%

Example 4.

After realizing the sale of two pieces of WATER and paying with the payment form BONUS and cash, the system calculates the value of margin and profit also at 0: