Retail profitability report v2
This article explains how to use the retail profitability report (v2) to analyze gross profit and margin for retail products at the product level, across any selected date range. The report brings sales, cost, and profitability together in one view so that inventory managers and operations teams can assess retail performance without piecing numbers together from multiple reports.
Overview
Measuring retail profitability accurately is essential for deciding what to stock, what to promote, and what to discontinue. The retail profitability report (v2) gives inventory managers and business owners a single, product-level view of retail performance, with net sales, cost of goods sold (COGS), gross profit, and gross margin percentage shown side by side for three different costing models — perpetual average, latest procurement price, and configured purchase price. Comparing the three costing models in the same view helps you understand how different valuation methods affect reported profit and choose the method that best fits your business practices. Retail returns are included and automatically netted against sales and cost, and consumable products are excluded so the report reflects true retail profitability and nothing else.
Key terms
Net sales: Retail revenue for a product after discounts and returns are applied, excluding tax.
COGS (cost of goods sold): The cost associated with the retail products that were sold in the selected period.
Perpetual average: A costing method that values each unit at the running average cost of the product, updated with every inflow.
Latest procurement price: A costing method that values each unit at the most recent purchase price recorded for the product.
Configured purchase price: A costing method that values each unit at the purchase price set on the product record in the Product Master.
Gross profit: Net sales minus COGS. Gross profit reflects the margin earned on retail sales before any operational or overhead costs.
Gross margin percentage: Gross profit expressed as a percentage of net sales.
Prerequisites
Required roles: Any role with the retail profitability v2 report permission.
Required permissions: Retail profitability v2 report (under Roles and Permissions > Inventory Manager).
Limitations
The report covers retail products only. Consumable products, service consumption, internal consumption, wastage, and adjustments are excluded.
Figures represent gross profit (Net Sales − COGS), not net profit. For a full profit-and-loss view, combine this report with the Sales - Accrual report and other financial reports.
Net Sales is shown excluding tax. Tax components from retail invoices are not part of this report.
Gross Margin percentage is blank when Net Sales is zero, because dividing by zero is undefined. Gross Profit still displays the arithmetic result.
Large date ranges may take longer to load depending on data volume. Narrow the filters when working with a long date range if the report is slow to render.
Access the report
At the center level, click the Reports icon.
On the Reports Dashboard, search for and select Retail Profitability v2.
Apply filters at the top of the report as needed.
Click Refresh to load the data.
Note
Product Type is fixed to Retail and cannot be changed from the filters. Consumable products never appear in this report.
Filters
Use the filter bar at the top of the report to narrow down the data.
Filter | Description |
|---|---|
Transaction Date (From, To) | Limits the report to retail product transactions posted within the selected date range. |
Centers | Limits the report to transactions at the selected centers. Multi-select is supported. |
Category | Limits the report to the selected product categories. Multi-select is supported. |
Sub-category | Limits the report to the selected product subcategories. Multi-select is supported. |
Vendor | Limits the report to products supplied by the selected vendors. Multi-select is supported. |
Brand | Limits the report to the selected product brands. Multi-select is supported. |
Business unit | Limits the report to the selected business units. Multi-select is supported. |
Search | Searches by product name, product code, or barcode. |
The report displays one row per retail product, aggregated across the filters you apply. Columns are grouped into identifiers, sales, COGS (three models), and profitability (Gross Profit and Gross Margin % for each model).
Column Name | Short Description | Details and Examples |
|---|---|---|
Center Name | Center where the retail transactions occurred. | Displays the name of the center where the retail product was sold or returned during the selected date range. |
Business Unit | Business unit associated with the center. | Displays the business unit the center belongs to. Useful for grouping results across multi-brand or multi-format organizations. |
Product Name | Name of the retail product. | Displays the name of the retail product as defined in the Product Master. |
Product Code | Unique code that identifies the product. | Displays the product code assigned to the product in the Product Master. Used to differentiate products that may share similar names. |
Product Type. | Type of product. | Always displayed as Retail. Consumable products are excluded from this report. |
Brand | Brand associated with the product. | Displays the brand the product is linked to in the Product Master. |
Vendor | Vendor from whom the product is procured. | Displays the vendor linked to the product in the Product Master. If the product is procured from multiple vendors, the primary vendor is shown. |
Category | Product category. | Displays the top-level category the product belongs to — for example, Hair care or Skin care. |
Sub-category | Product sub-category. | Displays the subcategory within the product category — for example, Shampoo or Serum. |
UOM | Unit of measurement for the product. | Displays the unit of measure configured for the product — for example, bottle, ml, or gram. Appears only for products with a configured UOM. |
Qty | Net quantity of the product sold during the selected date range. | Displays the net quantity of the product sold. Returns appear as negative quantities and automatically reduce the total. Example: 25 units sold − 3 units returned → Qty = 22. |
Net Sales | Net retail revenue for the product, excluding tax. | Displays the net revenue for the product after discounts and returns, excluding tax. Returns reduce Net Sales. Formula: Net Sales = Gross Retail Sales − Discounts − Returns. Example: $500 gross sales − $50 discount − $30 return = $420 Net Sales. |
COGS (Perpetual Average) | Cost of goods sold, valued at the running average cost of the product. | Displays the cost of goods sold for the product, calculated using the perpetual average cost method. The average cost is updated with each new inflow and reflects the running cost up to the transaction date. Returns reverse COGS for this model. |
COGS (Latest Procurement Price) | Cost of goods sold, valued at the most recent purchase price. | Displays the cost of goods sold for the product, calculated using the most recent purchase price recorded for the product. Returns reverse COGS for this model. |
COGS (Configured Purchase Price) | Cost of goods sold, valued at the purchase price configured on the product record. | Displays the cost of goods sold for the product, calculated using the purchase price set on the product record in the Product Master. Returns reverse COGS for this model. |
Gross Profit (Perpetual Average) | Gross profit calculated using the Perpetual Average COGS model. | Displays the gross profit for the product using the perpetual average cost method. Formula: Gross Profit (Perpetual Average) = Net Sales − COGS (Perpetual Average). Example: Net Sales = $420, COGS (Perpetual Average) = $280 → Gross Profit = $140. |
Gross Margin % (Perpetual Average) | Gross margin as a percentage, using the Perpetual Average COGS model. | Displays the gross margin for the product using the perpetual average cost method. Formula: Gross Margin % (Perpetual Average) = (Gross Profit (Perpetual Average) ÷ Net Sales) × 100. Example: Gross Profit = $140, Net Sales = $420 → Gross Margin % = 33.33%. Gross Margin % is blank when Net Sales is zero. |
Gross Profit (Latest Procurement Price) | Gross profit calculated using the Latest Procurement Price COGS model. | Displays the gross profit for the product using the most recent purchase price. Formula: Gross Profit (Latest Procurement Price) = Net Sales − COGS (Latest Procurement Price). Example: Net Sales = $420, COGS (Latest Procurement Price) = $260 → Gross Profit = $160. |
Gross Margin % (Latest Procurement Price) | Gross margin as a percentage, using the Latest Procurement Price COGS model. | Displays the gross margin for the product using the most recent purchase price. Formula: Gross Margin % (Latest Procurement Price) = (Gross Profit (Latest Procurement Price) ÷ Net Sales) × 100. Example: Gross Profit = $160, Net Sales = $420 → Gross Margin % = 38.09%. Gross Margin % is blank when Net Sales is zero. |
Gross Profit (Configured Purchase Price) | Gross profit calculated using the Configured Purchase Price COGS model. | Displays the gross profit for the product using the purchase price configured on the product record. Formula: Gross Profit (Configured Purchase Price) = Net Sales − COGS (Configured Purchase Price). Example: Net Sales = $420, COGS (Configured Purchase Price) = $300 → Gross Profit = $120. |
Gross Margin % (Configured Purchase Price) | Gross margin as a percentage, using the Configured Purchase Price COGS model. | Displays the gross margin for the product using the purchase price configured on the product record. Formula: Gross Margin % (Configured Purchase Price) = (Gross Profit (Configured Purchase Price) ÷ Net Sales) × 100. Example: Gross Profit = $120, Net Sales = $420 → Gross Margin % = 28.57%. Gross Margin % is blank when Net Sales is zero. |
Sort and export the report
By default, the report is sorted by Net Sales in descending order, so the top-earning retail products appear first. You can sort by any numeric column — Qty, Net Sales, any of the three COGS columns, or any of the Gross Profit or Gross Margin % columns.
To export the data, click Export at the top of the report. The CSV or Excel file includes every column on the grid — all three COGS columns and all three pairs of Gross Profit and Gross Margin % — so the export and the grid stay consistent.