In this article we will study how profit calculates in Sales Register Report.
Gross Profit is calculated on the basis of Sale Price of items – Cost of items*
* This cost of your Inventory Items is computed on the basis of Purchase vouchers entered for that Item or the Initial cost specified for Opening Stock & the valuation method selected (AVCO or FIFO)
For example, if you sell an item for Rs.150 and it costs your company Rs.100, your profit per unit equals Rs. 50.
Also, the Profit percentage is calculated on the basic on Profit*100/ Cost Price, as in the above scenario the Profit is 50 and cost price is 100 so the profit % of the item is 50%.
If you wish to calculate Profit Percentage on revenue, in Sales Register report, click, calculate profit on revenue.
As mentioned in the below screenshot:
If you think, profit is wrongly calculated for any particular voucher, follow these steps:
a. Open your sales voucher, list down all the items on a paper: example: Item1, Item2, Item3
b. Now open Inventory Item details report for each item one by one, it will show you, what is the cost value of these items and how much it is sold for, how much is the profit on particular item
c. This way, you can calculate profit on all items of sales voucher and that's how it is listed in Sales Register report.
Sometimes it is possible that Gross/Net Profit shown in Profit and Loss Statement report is not matching with Gross Profit in Sales Register so for this you need to check below mentioned link: