Wednesday, March 27, 2019

Negative Gross Profit on Inventory Profitability Report

Inventory Profitability Report displays the revenues and costs using the accounting way of recognizing Revenues and Cost of Sales. You recognize Revenue when an Invoice or Cash Sale has been generated, while the Cost of Sale is recognize when items have been released from the Warehouse.

The report will display records and infomation posted on date range entered. Hence, if an item has been associated with a Sales Order but the fulfillment and invoicing were made on a different period and the report is filtered with date range where the fulfillment has been posted, the report will provide a negative profitability. Thus, if the period selected is for the date range where the Invoice is posted, the report will provide a 100% profitability

If you clicked on the amount of Total Cost, the system will direct you to the Inventory Valuation Detail Report, you may simply sum up the Item Fulfillments cost with the same date range of the Inventory Profitability Report. If you click on the Total Revenue Amount, the system will direct you to the Inventory Revenue Detail Report.

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