View Gross Profit Margin on Items Sold in QuickBooks
While your profit and loss/income statement report gives you the gross profit margin for your entire business, what if you prefer to see the gross profit margin by item sold instead?
Fortunately, there is a handy report in QuickBooks (all versions) to provide that very information to you!
Click Reports > Sales > Sales by Item Summary (Desktop) or Reports > Sales by Product/Service Summary (Online), and you’ll get something that looks like this:
Now that you have created the report, note that you can see the gross profit margin by both dollars and %.
This report works great for all inventory parts and assembly items in your QuickBooks.
GROSS PROFIT FOR NON-INVENTORY PARTS IN QUICKBOOKS?
Since QuickBooks does not track an average cost (or FIFO cost if your business is using that QB Enterprise Advanced Inventory option) for non-inventory parts, the above report doesn’t work so well.
You can approach this need a different way to get a similar report. Here’s how:
Click Reports > Custom Reports > Summary (in Desktop)
On the box that appears, be sure to choose Item Detail in the “Display Columns by” as shown below:
Once you do that, you get what looks like the traditional profit and loss statement, but you now see all the items you sell across the top.
This will include inventory parts, assemblies, non-inventory parts, services and other charges as well. You can then easily export this report to Excel to focus on just the non-inventory parts as well as quickly add formulas to get your gross profit by item.
Of course, this approach only works if you are also using items when you record the purchase of the item when you enter the check, bill or credit card transaction to pay for it (remember, each of these transaction screens has both an “Expenses” and an “Items” tab on them). This is how the cost of the item would appear on the custom summary report above to then allow you to see the gross profit for that item!
Here’s to more profits for your business in the coming weeks!