The Gross Profit report shows the difference between sales revenue and the cost of goods sold. This value is called gross profit and reflects the company’s earnings.
The report also includes the gross margin metric. Gross margin shows the percentage of profit compared to total sales revenue.
The charts in the report help you track:
- sales volume by date
- gross profit
- gross margin
You can analyze profitability for a specific warehouse or for individual products.
Open the report
Go to Inventory management > Analytics > Gross Profit.
The chart at the top of the report displays:
- total sales
- gross profit
- gross margin
Below the chart, you will see a table with detailed warehouse data. Use this table to compare warehouse performance.
Report metrics
Opening stock balance
The quantity of products available at the start of the selected period.
Received quantity
The total quantity of products received into the warehouse.
Sales revenue
The total sales amount for the selected period based on completed sales documents.
If this metric increases, product demand is growing. Low values may indicate sales issues.
Total cost
The total cost of goods sold during the selected period. This metric shows how much the company spent on purchasing products.
Gross profit
The difference between sales revenue and total cost.
High gross profit usually means:
- products are in demand
- pricing is effective
Gross margin
Gross profit divided by total sales revenue and multiplied by 100.
A high gross margin means the purchase cost was low compared to the selling price.
View product details
You can view gross profit calculations:
- for all products
- for products in a specific warehouse
To open product details, click the warehouse name or select View all products.
The report shows detailed metrics for each product, including product cost for the selected period. The calculation is based on sales orders.
Use the report to analyze profitability
The report helps you:
- track sales trends over time
- evaluate product profitability
- compare warehouse performance
Gross profit and gross margin can be negative if the product cost exceeds the selling price.
This can happen when:
- products are sold with discounts
- purchase prices increase
- selling prices stay the same
In brief
- The Gross Profit report shows the difference between sales revenue and the cost of goods sold.
- Gross margin shows profit as a percentage of total sales revenue.
- You can analyze profitability by warehouse or by product.
- Gross profit and gross margin can be negative if product costs exceed selling prices.