Business management requires processing and comprehending a large amount of different data to inform decision-making. To ensure that managers receive the necessary information quickly we have automated the process of creating reports. And one of them is the Work Orders Profit report.
In Orderry, profit from an order is calculated using the following formula:
Profit = Total amount (paid by the client, including discounts) — Cost (of parts used, work performed) — Employee salaries — All taxes.
If you are a taxpayer and your company reimburses VAT on purchases, check the box “Exclude refundable purchase taxes from cost.” This will deduct the amount of inclusive taxes paid during the product posting from the cost.
Then the profit is calculated as follows:
Profit = Total amount (paid by the client, including discounts) − Cost excluding refundable taxes − Employee salaries − All taxes.
For example, you bought a phone battery for $120 (including $20 VAT) and sold it to a client for $200. Employee salary is $30, sales taxes are $10.
Profit if you are NOT a taxpayer:
200 (sale) − 120 (cost) − 30 (salaries) − 10 (taxes) = 200 − 120 − 30 − 10 = $40
Profit if you are a taxpayer and you are reimbursed for VAT:
200 (sale) − (120 − 20) (adjusted cost) − 30 (salary) − 10 (taxes) = 200 − 100 − 30 − 10 = $60
Please note that non-serial goods are written off from the warehouse using the FIFO (First In, First Out) method, and goods with an expiration date are written off using the FEFO (First Expire, First Out) method. If goods from several batches are written off in an order, the cost price in a closed order is calculated as the sum of the cost prices of the units from these batches.
For example, we have Power Banks from two batches:
1 unit at a cost of $200 (batch received earlier)
2 units at a cost of $100
If we write off 2 units in the order, they are taken as follows:
1 unit from the first batch ($200),
1 unit from the second batch ($100).
Total cost in a closed order = (1*200) + (1*100) = $300.
The Work Orders Profit report is generated for closed work orders by closing date. It is part of the group of financial reports on the Reports > Finance > Work Orders Profit page.
Important: if an order is closed with a past date, it will be included in the report according to the set closing date, not the actual date.
There are several parameters that determine how the report is generated.
1. Period. It allows you to select the time period for which the report is generated: today, yesterday, this week, this month, last week, last month, this year, last year or custom.
2. Location. It allows you to select one / several / all locations if there is more than one.
3. Work order Type. You can see the profit of different work order types.
4. The checked box “Exclude refundable purchase taxes from cost” allows you to see the profit without refundable taxes.
For example, all except warranty work orders.
Set a combination you need and click Apply.
A report is generated with the main information about the financial components of the work orders. Within the table, you can sort by columns by clicking on their names. Positive profit is displayed in green and negative profit is marked in red. The bottom of the page displays the totals for each column.
You can also customize the display of columns in this report. To do this, click on the gear button and check the required columns.
You can print the report immediately or export it to your PC as an Excel file. The Excel file contains more detailed information about the report. Click on Actions and select the desired action.
