Difference between revisions of "Sales, Inventory, Profitability Analysis"

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(New page: This screen allows you to run a report of the profitability of your organization by analyzing the value and cost of your inventory and the profits from sales during a specified date range ...)
 
 
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This screen allows you to run a report of the profitability of your organization by analyzing the value and cost of your inventory and the profits from sales during a specified date range or a pre-configured fiscal time period.  You may manually enter the "From" and "Thru" dates or search for the dates using the [[calendar widget]].  You may also use a fiscal time period by selecting it from the drop down menu.  Select the Fiscal Type (for example, "Actual" or "Budgeted") from the drop down menu to run the profitability analysis for actual results or for budget or forecast results.   
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This screen allows you to run a '''profitability report for a product''' or a set of products by analyzing the gross profits from sales, the volume of sales, and the average value of your inventory.   
  
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Clicking the [Run] button will run the profitability analysis. Clicking the [Return to Reports] button will take you back to the [[Reports Main Screen]].
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To access this report generation screen, navigate as follows:
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* From the Main Navigation screen,
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* Click: Financials Icon > Reports Tab
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* In the Inventory section,
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* Click: Sales, Inventory Profitability Analysis -- link to report page.
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Then, fill in the form:
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* Enter the Product ID, or the first part of the ID for a set of products, to be analyzed.  If you
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    leave this blank the analysis is performed for all products that were sold in the period.
 +
* Enter a specified date range or a pre-configured fiscal time period.  You may
 +
    manually enter the "From" and "Thru" dates or search for the dates using the
 +
    [[calendar widget]], or you may also use a fiscal time period by selecting it from
 +
    the drop down menu. 
 +
* Select the Fiscal Type (for example, "Actual" or "Budgeted") from the drop down
 +
    menu, to run the profitability analysis for actual results or for the budgets and
 +
    forecasts. 
 +
* Click: [Run] button -- to run the profitability analysis for return on equity (ROE)  
 +
 
 +
Clicking the [Return to Reports] button will take you back to the [[Reports Main Screen]].
 +
 
 +
The report table that is produced includes these data items for each product in the report:
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* Product ID 
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* Sales Volume -- the revenue from sales
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* COGS -- cost of goods sold
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* Gross Profit -- revenue minus COGS
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* Beginning Inventory 
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* Ending Inventory 
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* Average Inventory -- part of the assets
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* Turnover -- Sales divided by Assets
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* Annualized Turnover 
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* Profitability Ratio -- profit margin divided by equity
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This report is based on a metric similar to [http://en.wikipedia.org/wiki/DuPont_analysis The Du Pont formula] of profitability analysis, but in this case the report uses gross profit margin for a particular set of products, and turns for that product inventory. Thus, the report is for incremental gross return on inventory assets, a measure of relative product performance.

Latest revision as of 14:42, 19 November 2009

This screen allows you to run a profitability report for a product or a set of products by analyzing the gross profits from sales, the volume of sales, and the average value of your inventory.

To access this report generation screen, navigate as follows: 

* From the Main Navigation screen,
* Click: Financials Icon > Reports Tab
* In the Inventory section,
* Click: Sales, Inventory Profitability Analysis -- link to report page.

Then, fill in the form: 

* Enter the Product ID, or the first part of the ID for a set of products, to be analyzed.  If you
    leave this blank the analysis is performed for all products that were sold in the period.
* Enter a specified date range or a pre-configured fiscal time period.  You may
    manually enter the "From" and "Thru" dates or search for the dates using the 
    calendar widget, or you may also use a fiscal time period by selecting it from
    the drop down menu.  
* Select the Fiscal Type (for example, "Actual" or "Budgeted") from the drop down
    menu, to run the profitability analysis for actual results or for the budgets and
    forecasts.  
* Click: [Run] button -- to run the profitability analysis for return on equity (ROE)

Clicking the [Return to Reports] button will take you back to the Reports Main Screen.

The report table that is produced includes these data items for each product in the report:

  • Product ID
  • Sales Volume -- the revenue from sales
  • COGS -- cost of goods sold
  • Gross Profit -- revenue minus COGS
  • Beginning Inventory
  • Ending Inventory
  • Average Inventory -- part of the assets
  • Turnover -- Sales divided by Assets
  • Annualized Turnover
  • Profitability Ratio -- profit margin divided by equity

This report is based on a metric similar to The Du Pont formula of profitability analysis, but in this case the report uses gross profit margin for a particular set of products, and turns for that product inventory. Thus, the report is for incremental gross return on inventory assets, a measure of relative product performance.

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