Tracking Product Margins and Markups in QuickBooks Enterprise
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:
- Is QuickBooks an MRP system?
- Inventory forecasting and planning tool for QuickBooks
- Buying one part from many vendors – the multiple vendor feature in QuickBooks Enterprise
- Tracking available to promise inventory status in QuickBooks