I am looking to view the Profit Margin on an individual Estimate. The Current Estimate screen has a Column for "Cost", "Markup" and "Total" with a Subtotal of the Cost Column and a Markup Amount and a Total at the bottom of the Screen.
I want my Estimators to be able to see the Profit Percentage Calculation at the bottom so they can make sure they are meeting Company Goals and not sending an Estimate that has less than approved Profit Percentage.
Is there a way to add this field? A better way to Review the Estimate, Etc.?
Hello there, @jfsmithsmith1274.
Let me help share some information about adding a Profit Percentage on an estimate.
In QuickBooks Desktop, you can customize the fields of your estimate template. However, we don't have the option yet to calculate the Profit Percentage on an estimate just like the markup column. What we have is a report that displays the gross margin. You can go to the Reports menu then select Sales and click Sales by Item Summary.
Adding the profit margin would be a great addition, and we always encourage you to send your feedback so that we know the features or product improvements you want. You can send your feedback by clicking the Help menu on your QuickBooks. From there, select Send Feedback Online and click Product Suggestion.
I'm going to send the same request over here on my side, so we're getting them through both employee and customer channels.
Keep me posted if you have other questions about estimates. I'm here to help however I can.
You would make sure you are using Two Sided Items. The markup here on the estimate is part of Revenue projection.
Once you list the items, you run Estimate Vs Actuals reporting, and you can then deselect Actual Cost and Actual Revenue. That's how they "see" profit. Not on the Customer Quote. Run a Report. Please see my attachment.
Hello there, jfsmithsmith1274.
Thanks for the quick response. Allow me to join the conversation and provide some additional information about running the Estimated Gross Profit by Project report.
At this time, the option to automatically show the Estimated Gross Profit by Project is unavailable. As mentioned by @qbteachmt, you can run the Estimate Vs Actuals report and remove the Actual Cost and Actual Revenue column to see the profit
I’d still suggest sending your thoughts about adding the Estimated Gross Profit by Project Report straight to our developers. Ideas like this are helpful in identifying the features our customers want the most for consideration in future enhancements.
To send feedback:
While you do that, I'll personally let them know about adding this report via feedback.
Add a comment below if I can provide any assistance while working in QuickBooks. I'll be here to help. Wishing you well.
I gave you how to do this, and Showed the report with all the columns: "I am looking for Estimated Gross Profit by Project"
Run either Est vs Actuals Summary or Est vs Actuals Dertails report. Customize it and remove from the Display tab the columns you Don't Want. It is that easy.
And if you use something to designate which jobs belong to which project managers, such as Job Type or Customer Type, you can set up these reports and filter on Job Type or Customer Type; retitle that report, such as "John Smith's Project Manager - Projected Profit" and Memorize it. Now John Smith, your manager, has the report in the Memorized Reports list. That's why you Memorize your own.
I would use the report I showed, customizing to keep what you need, and Export to Excel where you have a workpage for which types of activities need to meet which goals. QB reports will present the data, but are not great for analysis to targets or comparisons. I use Excel for this. Example:
You see the total for Services, which are typically set at the "retail" rate, already, as Price. Unless the scope of Work gets exceeded on a Bid or Fixed Fee contract, there is not typically a need to monitor Margin.
For Noninventory items, you might have these two-sided items set to 0 for Cost and Price, because they vary. That is an example where your estimator needs to Project likely purchase costs and a reasonable selling point, and you would want to compare to Expected Margin or Required profitability for that type of cost.
And, for Other Charge type items, such as Freight or Building Permits, there might never be any Markup or Profit.
So, you would take the report I show and Customize it, and filter on Only Noninventory, in my example here, then export that to Excel with the Lookup function where you already have documented "our requirement for margins or profit on these types of things."
That report is the Starting point.
The Estimate never includes Profit on it. It is your Source of the data, not the reporting analysis resulting from the data. It is Scope of Work and cost/price info.
I'm using QBO and need to see the profit margin before I complete an estimate and send it out, in order to ensure that our corporate margin goals are maintained.
I'd like to ideally see the cost as well as the sales price and the difference for each line item in my estimate as well as a total.
How can I do that in QBO?
Thanks for reaching out to the Community, khs.
Being able to see the profit margin before completing an estimate is beneficial for you and other users in QuickBooks Online (QBO). While this option is unavailable, I'll make sure to take note of your request and forward this to our developers.
Your thoughts are important for learning, growth, and development and we take them all into consideration.
As for your other question, we don't have an option to view the line items of an estimate on a certain report. You'll have to open each estimate to view the specific details. However, you can run the Estimates by Customer report to see the pending transactions. Here's how:
I'll update this thread once there are any changes with your recommendation.
You can also check out the Firm of the Future site to learn more about product enhancements and tips to efficiently manage your business.
It's my priority to provide the help you need, so please add a comment below. I'm always here to assist. Have a great day.
I would really like to see the profit margin in QBO before the estimate goes out. Not much good finding out after the invoice stage that the margin wasn't enough. Surely this is a very basic improvement for a company of this standing?
We'd love to have that feature as well, BJCoghill.
I can see the importance on knowing the profit margin when creating the estimate. This will help you to better strategize your business in the future.
I'll send another feedback to our product developers. Hearing what the customers want helps them on their research for feature updates.
For now, you can check the QuickBooks Blog for product updates.
If you have other suggestions you want to pitch in, don't hesitate to leave a reply.
These reports only work if you have all of your COSTS or material purchases entered against that project or job. As a salesperson, we need to know upfront at the estimating stage what the profit margin is we are bidding to the client, BEFORE we have the materials entered in on the cost side of things. I do not understand why this feature can be in the desktop version but not in the online version.
I note that this has been something that lots of your customers have been asking about for some time now. I can only assume that this isn't something that is going to happen as the developers obviously don't realise the importance of margins and markups withing an accounting package.
This is so important to us being successful in business
I had a report created in Advanced Reporting that will show me Estimated Profit Margin for all Estimates. I usually update Advance Reporting Weekly and execute report and share with Estimators. It only took a few weeks seeing Estimates with to low a margin on the report for them to start making sure estimates were reflecting targeted margin. Still after the fact, but at least I can catch issues quicker and correct. I would be willing to share the Advance Report if you want to contribute something to the development cost.
I had an outside consultant build the report and just imported the report into advance reporting. Can run for all or just by Sales Rep.
I am using a separate estimating package linked to quikbooks at the moment, and I was thinking that if I could see the margins in quickbooks I probably would manage without the add on. How much were you think about for the report as I have no idea about the costs of this sort of thing.
Thanks for your reply
Being able to see what our cost and margin while creating estimates is crucial to our business. Why this is not already part of QBO is frustrating and creating a lot of repetitive work and lost time for management to review and approve before sending. We don't need and calculations for actual margin percentage although it would be nice... just add a column in the view for item cost as is done in QB Desktop.
I also want this feature badly.
This functionality is/was available in QB desktop. Several years ago QB was pushing everyone to migrate to the online version. While there are great benefits to QB online, not being able perform a basic "blocking and tackling" functions like estimating a job and knowing the margin or profitability before you send it to a customer without the need to separate spreadsheet or offline calculation is VERY Disappointing.
It's been several years since QBO was launched and this feature is still not available. I would be nice for someone on the Development team to explain WHY. It's painful enough to complete an estimate that could days to pull together then to manually check every change to understand the impact is brutal. This was easy in QB desktop.
How much longer will QBO users have to wait for this feature?
*BUMP* We here in AUS also require this functionaility, to see the profit margin on a Quote.
I did come across a way to do a set markup on the quote line itself. Say I know my product cost is $100 and my set markup is 36%, you can type "100*1.36", then press tab or ctrl + down arrow, and that will then put in $136. The problem is if you want to play around with the sell price / markup %, there's no way to see the old calculation, or a % markup. I also investigated using a negative discount % on the quote line, however negative discount isn't allowed, which makes sense.
Please bring this soon!
I've sent feedback on this multiple times and see hundreds of others asking for this simple feature. Its already on the desktop version of quickbooks! Why can't you guys just add it to the online version already and make your customers happy?? This is ridiculous. I have multiple online accounts and have to get the desktop version for this one simple feature. I am canceling all my accounts and finding a new platform if this doesnt get updated soon. It is absurd.