Profitability (report 185)

Profitability is calculated by: expenditures total (in sales prices) minus invoice total. You can furthermore track contribution margin (cost price minus invoice total) and Gross profit (invoice total minus purchases (in cost price)).

Profitability example: 
Expenditures total = 1000
Invoice total = 1500
Profitability = 500

Contribution margin example: 
Cost price on hours entered to a job = 1000
Invoice total = 1500
Contribution margin = 500

Gross profit example: 
Invoice total = 1500
Purchases in cost price = 1000
Gross profit = 500

The profitability is best shown in the Job profitability report.

The Job profitability report is opened from the job list and is based on the filter that has been set in the job filter – that way supporting to show only the exact chosen population of jobs. Example: if you mark the job statuses “Invoiced” and “Cancelled”, then the jobs list will update to show only these jobs and the report will only pull data from these jobs.

The report is located here:

In the bottom you can select the currency in which the report should show.

The report serves 2 separate purposes:

  1. “How did it go?” – i.e. what was the profitability on historical and closed jobs.
    – In this case the filter in the job list should be set to job status “Invoiced” and “Cancelled”. Combined with all or selected customers.
    – The “Sort by” filter should be set to “Job end date”. This means that all jobs – that is in the job filter and at the same time are having an end date within the date filter range will be included in the report. Having selected “Job end date” in “Sort by” also means that jobs will be shown in their entirety – i.e. all expenditures and invoicing will be shown regardless of occurrence.
  2. “What has been the activity in a given period?”
    – In this case the filter in the job list should be set to all job statuses. Combined with all or selected customers.
    – The “Sort by” filter should be set to “Posting date”. This means that the report will show exactly what has happened within the date filter range – nothing more and nothing less. Can be reconciled to other reports or views that for instance show the total invoicing in a period.

Regardless of purpose, price quote and invoice drafts can optionally be included, but is normally not recommended.

Choose the desired groupings where it is recommended to use Company in level 1 to get a grand total in the top of the report. All groupings must have a value (<None> if nothing else) for the report to work. 

Report example

The report supports a classic “Contribution” approach (content in the green box) – as well as a sales price approach (blue box).

The content of the columns are as follows:

Price quote Total The sum of all price quotes (except perhaps for drafts if not included)
Purchases The sum of purchases on all price quotes on each job
GP Total ÷ Purchases
Expenditures, sales price Internal The sum of all time and material entries – measured at sales price
Purchases The sum of all expense entries and creditor invoices – measured at sales price
Total Internal + Purchases
Invoicing Turnover The sum of all sales invoices (except for drafts if not included)
Purchases cost price The sum of all expense entries and creditor invoices – measured at cost price
GP Turnover ÷ Purchases cost price
CM GP ÷ Accumulated cost price on time and material entries(the latter not shown separately in the report)
CR CM / GP
Up/Down Turnover ÷ Expenditures, sales price Total
WIP adjustment Shows if any adjustments has been made on each job

 

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