See your profit, notice trends in your margins, and make more informed decisions with the Profit Report. The Profit Report shows a comparison of your sales alongside the wholesale cost, organized by day and by each individual SKU, which can help you identify products that make the most profit and products that may be underperforming. This report will allow your team to make decisions on what products to stock in the future and how best to price them.
Where can I find the Profit Report?
The Profit Report is found in Back Office under Reports > Other Reports.
Read on to learn more about what's included in the Profit Report and how you can use it to your maximum advantage.
How does the Profit Report analyze costs?
The Profit Report analyzes sales and costs at the SKU level and uses the specific cost for each SKU to analyze profits. Why? A majority of our customers have multiple SKUs from different manifests associated with a single product name. Since the wholesale cost of any given product may not be the same for each new delivery/new manifest, the Profit Report analyzes sales at the SKU level. By analyzing at the sku level, this ensures a direct cost for each SKU. By having direct costs you can analyze profits and run queries to find things such as COGS.
For instance, let's say we have a Blue Dream bulk flower that the supplier charged you $6.00 per gram for last month. You've taken in another shipment of the same flower from the same supplier this month as well, but this time they've lowered the cost to $5.50 per gram. You still have some inventory left over from the first shipment, and inventory from the new shipment has also been moved out to the sales floor. You've kept the retail price the same, despite the decrease in wholesale cost. Now, in the same day, you've sold the last of the original shipment, and also some from the new shipment.
In this scenario, the fact that the Profit Report is based on individual SKUs instead of products helps you get a better picture of actual profits, because it will capture the fact that you've made $0.50 additional profit on the Blue Dream flower that was sold from the newer SKU. Conversely, using an average cost at the product level may throw this calculation off.
Generate a Profit Report
In the Back Office, navigate to (1) Reports > (2) Other Reports.
Set a Start Date and and End Date, and then click Run Report (3).
The Profit Report may take a while to generate, depending on how long your date range is and the number of sales that occurred in that time frame. When complete, you'll see a Download button here (1).
Or, you can close the window or move on to another task while the report is generating, and download it or email it to yourself later from your Tasks view (2).
Reading and interpreting the Profit Report
Each row in the Profit Report represents a single item sold, with the following columns:
- Date: Date the item was sold.
- Receipt ID: A unique identifier for the transaction where the item was sold. This can also be referenced on the Activity screen in the register app or in Back Office.
- Transaction Type: Sale, Return, or Void.
- Green Bits Product ID: An internal unique product ID used by Green Bits.
- Product Name: Product name as entered on the Products page in Back Office.
- Product Category: Marijuana or Paraphernalia, based on the "Is Marijuana" setting on the assigned Product Type.
- Product Type: Product Type that this item is assigned to in Green Bits.
- Product Tags: Tags associated with the product in the Product Details, if applicable.
- Product Is Marijuana: Yes or no, depending on the "Is Marijuana" setting on the assigned Product Type.
- Product Vendor: The name of the product's vendor - previously referred to as "Supplier".
- Product Weight: For unit-based items, this column will show the weight per unit for this item. This field will be blank for any items sold by weight, such as bulk flower.
- Product Weight Unit: For unit-based items, this column identifies the unit of measure - grams, ounces, pounds, etc. This field will be blank for any items sold by weight, such as bulk flower.
- Inventory SKU: The unique identifier for this item, as entered in the SKU field on the manifest or on the Product Inventory tab.
- Quantity Sold: For unit-based items, this will be 1; for weight-based items, this will be the actual weight entered at the point of sale.
- Total Retail Price: The retail price of the item, before any discounts, including all taxes.
- Base Price: The retail price of the item, before any discounts, and before tax is applied.
- Discounts: The total dollar amount of any discounts applied to the item, if applicable.
- Discounted Base Price: Base Price (column P) minus Discounts (column Q). This is the pre-tax amount that the customer actually paid, and represents your total revenue from the sale of this item.
- Taxes: The amount of tax applied/included for this item. This does not factor into the calculation of cost or profit.
- Cost: The Wholesale Cost of the item(s) sold. For weight-based items, this represents the Cost Per Unit, multiplied by Quantity Sold.
- Profit: Total profit from this item, or Discounted Base Price (column R) minus Cost (column T).
- Gross Margin: Profit (column U) divided by Discounted Base Price (column R), expressed as a percentage.
What do I do if my Profit Report is missing costs?
The Profit Report will automatically calculate your profit, but your reports are only as good as the data within Green Bits.
Read more here on how to Ensure your Costs are Entered & Accurate, including step-by-step instructions on how to enter costs if they weren't originally entered.
Summarizing the Profit Report with a Pivot Table
The Profit Report is broken down by individual sales and by day. If you're generating the report with a longer date range, or if you'd like to summarize this rich data to get more actionable insights, you may find it helpful to summarize the profit report by creating a pivot table.
A pivot table can combine many rows of data by identifying each instance of each SKU and compiling an aggregate view showing the total of all sales by SKU for the given time frame.
Using the Profit Report to calculate Cost Of Goods Sold (COGS)
The Profit Report by default shows the total cost by SKU and by date, but it does not include a total cost of goods sold. To calculate the total:
Use the AutoSum feature in Excel, or enter a SUM formula if using another spreadsheet program. Select the first blank cell in column S at the bottom of your report, then enter the following:
=SUM(S2:S[last row number containing data])
Cell S2, by default, will be the first cell containing cost data, while the second value will be the final cell containing cost data. In the example below, our final row is 283, so our final cell containing cost is S283. Excel's AutoSum feature pre-fills this formula for you.