I have tried a problem we are facing in our setup by creating demo account on erpnext.com
We have an item setup for recording purchase of services (ex. Test Non-stock item in the attached screenshots) which in real scenario could be Installation and Deployment
The Gross profit shows huge loss on account of following:
Purchase invoice of same item of 10 nos for ₹ 100
Sales invoice of same item of 1000 nos for ₹ 10
How can gross profit of a service item be based on incoming valuation of a nonstock item
Yep. The report will perhaps need to be redone for non-stock items. The issue is with the logic that non-stock items get expensed out as soon as you inward them. I think you need to covert that into a cost per item and then report gross profit.
You can make a github issue for this and it will get addressed when it gets addressed. Till then your best bet is to calculate gross profit for non stock items manually. I mean use this report, export it to Excel, and find the Buying price per unit and calculate the gross profit based on (Avg Selling Price - Avg Buying Price)*Number of Units Sold.
Hi I have the same problem. The buying amount on the gross profit is not reflecting which give a 100% gross profit if I sort the date on a monthly basis.
The company is a service company which have a none maintaining stocks as item. They create a sales order > sales invoice and purchase order > purchase invoice. Since items are a non-stock, they do not create delivery receipts or purchase receipts.
Setting of the items are on a FIFO and perpetual inventory.
How can I solve getting the buying amount on the Gross profit by filtering it on a monthly basis and by project since we tag sales and expenses by project too. But if we filter the date by month, it provides a value but not the exact buying amount (expenses) for the whole year.
Anyone’s got a solution to this? I am using v13 and I can’t still calculate the correct gross profit for non-stock service items. It doesn’t calculate the Buying Amount and the gross profit always remains at 100%. I checked the demo EPRNext instance and it is the same there too.
How do services companies using ERPNext do it? I want the system to calculate the correct gross profit. Any help would be immensely appricieated.
As I check, yes, I can see “Gross Margin” & “Gross Margin%” on the project page. I am a bit confused if it’s the same as “Gross Profit”. My goal is to always keep a check on the profit margins of my services. I am a bit disappointed that I can’t do it on the Gross Profit report page but your solution is actually quite sufficient.
If I may ask, are you in the services domain? If yes, what reports/calculations do you use to check your services, projects, and company progress? I know the answer may be a bit too long, but this would mean a lot to me as I am trying to optimize my business growth.
I am encountering this issue in 2021 and your reply is the most detailed and meaningful.
I’ve been stuck with this issue for two days and haven’t found a solid solution. I need a way to keep track of correct gross profits for non-stock items. If you’re seeing this, can please guide me on how to determine Cost Per Item and create a custom report inside ERPNext (if that’s possible). I would be immensely grateful
I made a new detailed post on this but a yet to receive a v13 solution to this. Why hasn’t been this addressed?
Hi, have you guys already had a solution on the gross profit for non-stock items aside from converting the items into a maintaining stock? Since it is not practical for non-stock items (service) to make it as a maintaining stock.
Users will be confused if why there is qty stock on service items.
