About order profitability
Order Profitability
Your profitability area summarizes the order's revenue, purchases, and estimated profit margin.
In this article we'll cover:
Parts of the Order Profitability section
Gross Revenue:
This is the total ex-tax amount taken for the order.
Purchases:
This total shows you the total amount for all non-material purchases linked to the order (How do I add an Expense to an Order?).
Material Cost:
This is the total material cost attributed to the order. For more information, please see How is the Order Material Cost Calculated?
Estimated Internal Labor:
By default, your internal labor costs are assumed to be factored out as salary, dividends, or other out of your total profit rather than a set amount per order. However, if you still want to see an estimation of internal labor costs on your profitability, you can switch this setting by following the instructions outlined here: How do I include estimated internal labor in my order profit margins?
Gross Profit:
This is the amount left after purchases and material costs are removed from your ex-tax revenue for the order. Overheads and labor are not included in this tally. If you'd like to include labor in your margins, you can switch this setting on by following the instructions outlined here: How do I include estimated internal labor in my order profit margins?
Gross Margin:
Your estimated profit margin for this order is based on the Gross Profit calculated.
Including internal labor in order profitability
To include an estimate of internal labor in your order profit margins:
Navigate to your Account Settings page.
Scroll down to the Internal Labor area, and select the Include estimated internal labor in order margins? Tickbox.
The estimate for internal labor is derived from the current recipe manufacture time for all products/variations listed in the order and the internal labor rate set for your account. If you change your labor rate or manufacture time, all orders will display the most recent data (i.e., they will not preserve previous labor rates and manufacture times).
As another indication of labor costs, you can obtain the total labor cost you have attributed to each of your manufactures via your Manufacture Summary Report. The pricing guidance feature on your product page can also calculate estimated product margins, including labor.