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Causes/ Reasons that Affect Sales Margins

Here are the factors/causes/reasons that throw off sales margins:

  • Cause 1: Parts
  • Purchasing a barrel/case and selling by unit.
  • Example: A barrel of oil bought with 1000L and sold by the liter.
    → Create 2 products: one by the liter and the other by 1000 liters.

     

  • Cause 2: Labor
  • Option 45 must be unchecked (normal configuration).
  • Otherwise, if you sell 4 tire installations, the cost will be calculated as 4 hours.

How to Find the Errors

  • Use the sales report (click on the hyperlink to drill down to the invoices causing issues).

  • Do not use the sales report by category: no drill down available.

  • Go to Main Menu > Sales > Reports > Summary.

  • P.S.: The sales report by category does not allow you to drill down.
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