Skip to end of metadata
Go to start of metadata

You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 2 Next »

What is an Inventory Profit & Revenue report?

This report inform us a considerate amount of information about the sales of product during the selected period. It helps us answer these questions:

+ How much did we sell during the period? What was their cost & revenue?

+ What was their profit? What was the margin and turnover rate?

+ Which product was sold the most? Which product had the highest margin? Which product line earn us the highest profit?

What is included in the Profit & Revenue Report?

  • Sold Qty = The total qty shipped from the selected sources during the selected sales period.

  • Total Revenue = Total Revenue = Total revenue earned from product shipped of the selected sources during the selected period [(Row Total of the ordered product - Tax Amount) / Ordered Qty * Shipped Qty].

  • Total Cost = Total cost of all shipped qty - Total cost. (The cost is recorded in the shipment -> Total cost = MAC at the time of the shipment * total shipped qty) (Refers to US01.5).

  • Average Cost = Total Cost / Sold Qty

  • Gross Profit = Total Revenue - Total Cost

  • Margin (%) = Gross Profit / Total Revenue (How profitable the warehouse is from the sale of products)

  • Turnover Rate =

    • Turnover Rate = Sold Qty x 2 / (Opening Qty + Ending Qty)

    • Opening Qty = the latest qty of the product before the day of the selected beginning date. (The new qty of this product in the last inventory movement before the beginning date) Ex: If user selects the start date as 3/7 -> The system will find the last inventory movement before the date (from 2/7 to before - If there is no movement on 2/7 then the system will continue to find the movement in the previous day until there is a movement). If there is no inventory movement from 2/7 to before -> Opening Qty = 0.

    • Ending Qty = the latest qty of the product before 24h of the selected ending date. (The new qty of this product in the last inventory movement before 24h of the ending date) Ex: If user selects the end date as 5/7 -> The system will find the last inventory movement before 12.am- 24:00 of the selected date (from 5/7 to before - If there is no movement on 5/7 then the system will continue to find the movement in the previous day until there is a movement). If there is no inventory movement from 5/7 to before -> Ending Qty = 0.

How does Inventory Profit & Revenue report support you in your sales strategy

Based on these information, Sales Manager will have an overview on the sales of product during the selected period. Sales Manager can make informed decisions about sales strategy in the next period.

For example:

High Margin, High Sales:

+ Maintain quality and customer satisfaction.

+ Invest in marketing and expand brand awareness.

+ Consider introducing new product variations or expanding product lines.

High Margin, Low Sales:

+ Identify reasons for low sales and address them.

+ Enhance marketing efforts and create more awareness.

+ Offer promotions, discounts, or collaborations to attract customers.

Low Margin, High Sales:

+ Optimize operational efficiency to reduce costs.

+ Monitor market trends and adjust pricing to remain competitive.

+ Explore value-added services or product differentiators to justify higher prices.

Low Margin, Low Sales:

+ Identify reasons for low sales and make improvements.

+ Enhance marketing strategies to reach more customers.

+ Consider partnerships or collaborations to increase visibility.

  • No labels