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Invoicing & profitability - Period profit

David Stevenson -

The period profit report uses tick off to evaluate profit on an invoice by invoice basis.  This gives it greater flexibility than the job/phase profit report as it does not require a job to be final invoiced before its profit can be reported.  Period profit looks at all sales invoices (and write offs, credit notes and revenue recognitions) dated in the period specified, and calculates the profit on each by deducting the cost value of any ticked off costs.  The total turnover (billed amount or recognised amount), total of ticked off costs and the total profit are them summarised by job / phase, then as required for sub-totalling (by client, by handler, by job / phase type, or by job team).  Other columns displayed are markup % and margin % (profit as a % of total cost and profit as a % of total invoiced respectively), total recommended charge and total investment.

Note that the last two columns are "whole job" values.  This report is based on a selection of sales invoices, but the data is displayed as a list of jobs / phases.  As such these "whole job" values can be displayed against values derived from the selection of invoices in the period that relate to the job / phase.

The export version extends the number of columns significantly to include other attributes of the jobs / phases listed, and also to separate the ticked off costs into time, materials and purchases, both as cost and recommended charge values.

Report specific options:

This report allows an optional additional subtotal to be displayed by team or project.

Adjust profit for late purchase invoices.  By default this report adjusts the profit figure for a job if a purchase invoice is received late.  A fundamental concept for reporting profit in Synergist is to use the purchase order cost in profit calculations, until such time as a final supplier invoice is received against the purchase order.  At this point the purchase cost used is the total value of purchase invoices.  If this is different to the purchase order cost then an adjustment to previously reported profit is required.  Take a simple example:

A job has a purchase order raised for £1000.00.  The job is billed in December for £1500.00.  Period profit reports a profit of £500.00 for the month of December for this job.  The supplier invoice is received in January, for £1100.00.  Even though there is no sales invoice in January on this job, Period profit will include an entry to adjust the profit on this job for the month of January by -£100.00.  If the report is run for the period December-January the profit reported will be £400.00

Use timesheet date rather than tickoff.  This option ignores tick off for calculating the time costs used in any profit calculation.  Instead the report selects timesheets dated in the report period irrespective of them being ticked off against a sales invoice or not.

Only show purchase values.  This option excludes time and material costs from the profit calculation - the report becomes a gross profit report rather than a net profit report.

Show sub-totals only.  This option hides the job / phase detail and only shows the selected sub-total(s).  Only affects the PDF version of the report.

 

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