Transaction Profit
This status window is found under the View menu on Sales Orders, Quotations and Invoicing.
Normal transactions and lay-bys show the total sale and cost values as at current stock pricing.
Tax
Keep in mind that the tax mode (set in INSTALLATION Workshop program under Tax Parameters) determines whether inclusive tax is considered to form part of the transaction cost. This can affect your profit margin percentage calculations.
Freight
Freight charges are treated as costs for gross profit reporting purposes. If you charge tax on freight and the freight tax rate is an inclusive tax rate (the tax component of the freight is not added to the invoice total) then this will be treated as a further cost of your sale.
Stamp Duty & Excise
Stamp duty and excise are subtracted from your sales total for profit calculation purposes.
Lay-bys,
cash orders
and invoice
sale orders do not treat the deposit portion of the transaction as part of the profit. CAPITAL's sales
reports, however, will ignore the 'potential' profit from such a transaction and only consider the deposit
as income. This is because the Transaction Profit window is making the reasonable assumption that the
sale will be completed. CAPITAL's income reports show profit as of a specific date range so do not make
this assumption.
Hints & Tips
Cash orders do not have cost pricing associated with them and the sale and cost pricing shown is only an estimate based on current pricing. By the time orders are filled, cost prices may have changed.
Invoice sale orders do not have costs associated with them. (Invoice sale orders are used to generate back orders--the back orders then take up any costs when they are released.) However, an estimate is shown here so that you may determine easily if you are likely to make a reasonable profit on fullfilling the order.
In the case of lay-bys and cash orders, since the sell price must be inclusive of tax on these types of transactions, the profit calculation will take this into consideration automatically.
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