Tracking Product Margins and Markups in QuickBooks Enterprise

 In Inventory Management in QuickBooks, Post, Profit Improvement Tips, QuickBooks Desktop, QuickBooks Enterprise, QuickBooks for Mfg + Distributors, QuickBooks Reports, QuickBooks Tips and Training

The Enterprise version of QuickBooks allows you to track both product margins and markups, a feature many inventory based businesses are looking for!

As a quick refresher:

  • Margin: the amount the product sells for above the cost of the product. Here is how to calculate it – (Sales Price – Cost of Item) / Sales Price. Example: If an item has a selling price of $100, and cost $40, the margin (also known as the gross profit margin) would be $60 or also 60% in this case. ($100 – $40) / $100
  • Markup: the percentage difference between the selling price and its cost. Here is how to calculate it – (Sales Price – Cost of Item) / Cost of Item x 100. From the example above, the markup is 150%. ($100 – $40) / $40 x 100

Be sure to check out my video that shows markup and margins in action within QuickBooks Enterprise:

RELATED TOPICS:

Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.