Analyze Gross Profit & Product Profitability

Last updated: 2026-07-09 Summary:

• Gross Profit shows revenue, cost of goods sold, and margin over time, grouped monthly, quarterly, or annually.
• Product Profitability ranks every product by margin so you can see what actually makes money.
• COGS Breakdown (Philippine tenants) produces the BIR Schedule 2C cost-of-services figures and exports them.
• All three read from posted invoices that use inventory-tracked products — they’re empty until you’ve sold tracked stock.

These reports live under Reports and need the View financial statements permission (reporting:financial-statements).

See margin over time — Gross Profit

1. Go to Reports → Report Hub and open Gross Profit (or pick it from the Reports sidebar).
2. Choose a date range, then a Group by — Monthly, Quarterly, or Annually.
3. The four KPI tiles give you the headline: Revenue, COGS, Gross Profit, and Margin %.
4. The chart plots revenue and COGS as bars with margin as a line, so you can see the trend at a glance.
5. In the period table, expand any row to break that period down to the product level. A product name links straight to its stock card.

Margin in the table is colour-coded so outliers jump out: green at 40% and above, orange from 20%, red below 20%.

Find your best and worst products — Product Profitability

1. From Reports → Report Hub, open Product Profitability.
2. Choose a date range.
3. The table lists every product with units sold, revenue, COGS, gross profit, and margin %, and the chart ranks the top products by margin. Click a product to open its stock card.

If your date range straddles a change in how COGS was allocated, an information banner explains it: older invoices use a proportional cost allocation and newer ones use exact per-product cost. It’s a note, not an error — the totals are still correct.

Produce the BIR cost-of-sales schedule — COGS Breakdown

This report is for Philippine tenants and maps your cost of sales to the BIR Schedule 2C lines used on the income tax return.

1. From Reports → Report Hub, open COGS Breakdown.
2. Pick a year and a quarter (or Annual).
3. The table shows each BIR category, its Schedule 2C line, and the amount, with a Total Cost of Services row. Expand Account Mapping to see which GL accounts feed each category.
4. Click Export for BIR to download the Schedule-2C figures as a CSV your accountant can transcribe.

For the Gross Profit and Product Profitability screens, read and compare on-screen; when you need the numbers in a filing-ready form, the COGS Breakdown export is the one built for it.

Where people get tripped up

• The reports look empty. They only count posted invoices whose lines use inventory-tracked products. Ad-hoc invoice lines and service items don’t carry a cost, so they don’t show here. Set up inventory products and post sales first — see Set up products & inventory.
• Margin colours are fixed thresholds. Green/orange/red are pinned at 40% and 20% for everyone; they’re a visual cue, not a target you’ve configured.
• COGS Breakdown is PH-only. It won’t appear for non-Philippine tenants — that’s expected.

See also

• Read your Balance Sheet & Cash Flow
• Adjust stock & read the stock card
• Set up products & inventory