Profit or loss reporting is crucial for businesses to know if the work performed is profitable, and can point to efficiencies needed in different areas of the business. The reporting tool in AroFlo allows you to create these reports on an overall as well as per invoice level. You can even report on P&L for Sales Invoices of materials.
Tasks can have multiple invoices recorded against them by using Part Invoices and the Final Invoice raised against the completed task. Because of this, in the Invoice Report section, we can use the Profit or Loss Per Invoice field to show us the calculated P&L for that invoice based on the task labor, materials and expenses directly added to that invoice.
Profit or Loss Per Invoice field
Profit or Loss Per Invoice
Profit or Loss Per Invoice = Invoice Total Ex - Invoice Task Items Cost Total *
* Invoice Task Items Cost Total is the total cost of all task labor, materials and expenses directly added to the invoice from the task.
Invoice style is important
It is essential that all invoices use either the Lab & Line Items or Detailed invoice style for the Profit or Loss Per Invoice field to work.
Quoted Tasks
Typically when invoicing quoted tasks, we don't directly invoice any costs and will need to compare the total of all invoices on the quoted task against the total cost of all task labor, materials and expenses. The Profit or Loss field is used in this case.
Profit or Loss
Profit or Loss = Task Invoices Total - Task Cost Total
Sales Invoices
Sales Invoices are created via the Create > Invoice menu, and as such are not linked to a task.
If your Site Administrator has turned on the option to track inventory on sales invoices, you can successfully track profit or loss on these invoices using the Profit or Loss Per Invoice field.