I am a little perplexed about the gross profit report. A lot of items shows 100% profit with buying price setup in the items. I normally create an item then put standard buying price. Purchase receipt is created after. Sales order to Delivery Note to Sales Invoice (sometimes sales invoices first then delivery note). I will convert Purchase Receipt into Purchase Invoice close to the payment date. I have seen a lot of items with 100% profit, which quite frankly is frustrating. What is the workflow to get correct gross profit on a sale? And how do I rectify the existing problem?
Yes. Prices are listed at purchase receipt and reflected at GL as credit (stock received but not billed). My understanding is that once the purchase receipt is entered, the buying price is entered as well. But in my case, it does not happen.