Cost/Profit
In this document, we will explore the Cost/Profit feature in HirePOS, a tool that allows you to record and calculate mark-ups on an invoice line by line basis, providing a Gross Profit Percentage (GPP) margin for the invoice. Additionally, we will delve into how to enter costs, understand the difference between Landed Cost and Cost Price, and generate reports to analyze profit margins effectively.
Entering Costs
To access the Cost/Profit Calculator, navigate to the Extras menu located at the top-right of the Booking/Invoice screen. The Cost/Profit screen displays a list of invoice item lines with columns for Cost, Revenue, Mark-up percentage, and Profit.
Adjust the Cost prices as needed. For sales items, you can utilize the 'Use Current Costs' button to retrieve current costs as a starting point and then make adjustments accordingly. If no cost is entered for a 'Sales' item on the Invoice Line, the Cost/Profit reports will default to the Cost Price set up in the Item setup > Purchase/Disposal tab.
The total Cost, Revenue, Profit, and GPP for the invoice are summarized at the bottom of the screen. Once adjustments are completed, remember to click 'Save Changes. ' Costs can also be included via the Related Tasks menu.
Landed Cost vs Cost Price
When configuring a sales item in HirePOS, you can define both a Cost Price and a Landed Cost if necessary. On the Cost/Profit screen, the 'Use Current Costs' button prioritizes the Landed Cost for the item. If no Landed Cost is specified, the Cost Price will be used.
Reports
Various reports can be accessed through Reports > Cost/Profit. The Cost/Profit by Date report includes Quotes, enabling you to evaluate potential profit margins on quotes. It is important to either 'cancel' quotes or convert them to a booking/invoice after the quote date for accurate reporting on past dates.
Additionally, reports are available that showcase Gross Profit Margins for sales-related items. If specific costs are not entered in the Cost/Profit Calculator, sales item costs are automatically retrieved from the Purchase/Disposal tab in the Item setup.