Learn about the improved Item Profitability report in QuickBooks Desktop Enterprise

1. Go to Reports, and select Jobs, Time & Mileage.
2. Select Item Profitability.
3. Read the brief overview of the benefits of the report.
4. Select Close to continue and view the report.

Note: When you view, analyze, and edit the report, you may need to consider the following:

• The Actual Cost and Actual Revenue come from the transactions you record in QuickBooks.
• The Difference represents your profit.
• A positive number indicates that the item has generated a profit.
• If you see negative numbers, you've lost money on a product or service.
• A negative number also indicates that the item was sold at a loss. 
• Some fields might show zero if there are incorrect transaction details for the customer or vendor.

The report lists each item with the details of

• Quantity Sold
• Item setup: Cost, Sales Price, % Markup, % Margin; where
  • % Markup = (Sales Price - Cost) / Cost
  • % Margin = (Sales Price - Cost) / Sales Price
• Item aggregated actual transaction: Actual Cost, Actual Revenue, Difference, % Actual Markup and % Actual Margin; where
  • Difference (Diff) = Actual Revenue - Actual Cost
  • % Actual Markup = (Actual Revenue - Actual Cost) / Actual Cost
    • It's calculated by looking at what you paid for and comparing it to the revenue it generated. 
    • For example, if an item costs you $250 per unit sold, and the company sold it for $400, then it's a [($400 - $250) / $250] = 60% markup between cost and revenue. 
    • This helps you cover production, labor, and overhead costs, which maintains financial sustainability.
  • % Actual Margin = (Actual Revenue - Actual Cost) / Actual Revenue
    • It's calculated by looking at your profit when you sell something. 
    • For example, if an item costs you $250 per unit sold, and the company sold it for $400, then it's [($400 - $250) / $400] = 37.5% margin, which means 37.5% of the revenue this item generated is profit. 
    • This helps you evaluate your company’s financial health.

You can easily view and modify each Item setup data from the report directly.

1. Select the field twice for any of the following items:
   • Cost
   • Sales Price 
   • % Markup
   •  % Margin
2. Use the Edit Item window to view and modify the Item setup data if needed. 
   Tip: QuickBooks uses the Cost, Sales Price, % Markup, and % Margin as defaults when you record a purchase or sale later. Once you record a transaction, you can still change it.
3. Close the Edit Item window.

1. Select the Actual Cost field twice for an item.
2. View the Item Actual Cost Detail report with each cost-based transaction linked to the item.

1. Select the Actual Revenue field twice for an item.
2. View the Item Actual Revenue Detail report with each sales-based transaction linked to the item.

1. Select the Difference (Diff) field twice for an item.
2. View the Item Profit Detail report for the item listing each time costs or revenue were recorded for the item.

In the improved Item Profit Detail report, you can find the additional details for each transaction through:

• Sales Rep
• Item setup: Cost, Sales Price
• Item actual transaction: Actual Cost, Actual Sales Price

When you view the Item Profit Detail report, you may want to consider the following:

• An item (product or service) might show unexpected results if the cost and sales price you set differ from its actual value. 
• If you find any errors in a transaction, you can always check the cost and sales price. Look at the details from when you first made or last changed the item.