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:


Recent Posts
Showing 2 comments
  • Sidney

    Is there a way to get Quickbooks to use the “Average Cost” that contains Landed Cost and such, and have it reflected in the Cost verses Sales Price that is used to determine the Markup % ?

    • Scott Gregory

      Hi Sidney:

      Unfortunately, there is no way to do this as far as I know. The average cost field is a system generated field and it can’t be used in the calculation of the markup % figures you are asking about.


Leave a Comment

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