Everyone has reviewed their Comparative Revenue report departmental analysis and at some time questioned “what occurred today to result in THAT margin?” Paladin POS now contains a new report to help you find answers to that very question. We call the new report the Invoice Margin Analysis Report.
You will find the new report under Reports – Sales Analysis – What I Need To Know. A range of dates may be selected along with a single Department, Primary Supplier, Location, Class 1, Class 2 or Class 3. All invoice lines that match your report settings will be found in the database and displayed in an Excel worksheet.
The right-most two columns of the report display the information that leads to the value you observed on the Comparative Revenue report, profit and margin. Information is displayed in margin order ascending; this means the smallest margin items are shown first. Since this is an Excel worksheet you are free to sort and organize the information in any manner that suits your investigation. Be sure to scroll to the bottom of the report to see column totals.
Our own use of this new report found a kit trigger item that didn’t have the proper reference margin set. Remember that both zero cost dump SKUs and kit trigger items use the value entered in the REF (reference margin) field to automatically calculate cost every time that item is sold. Since we hadn’t set the reference margin to 100%, we reported no profit from sale of the kit trigger item, but did record a cost for every line item in the kit. THAT was why a department’s margin was less that we thought it should be.
FYI: Margin calculations have a couple of rules beyond the math. Here is an overview of what we’re talking about:
- Lines with cost, but no sale price will display a 0% margin
- Lines with sale price but no cost will display a 100% margin
- Returns will normally display a negative margin, i.e. converted $20 cash into $10 of inventory. Exceptions to this include return sale price of less than inventory cost