Job Actual Costs Vs Invoice Sell Price

Kinetic ERP
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1

Hi,

I’m not sure if I’m looking at the wrong report or if there’s something I’m missing.

When I run the Sales Gross Margin report (or the BAQ behind it), I’m seeing a large number of jobs showing margins close to 100%. After investigating, it appears that the actual job costs are not being reflected correctly. In some cases, Parts On The Fly costs don’t seem to be included, and in others the report appears to be using the standard cost from the Part Master rather than the actual job costs.

When I compare the results to the Production Detail Report, the costs are significantly different from what the Sales Gross Margin report is showing.

Our production team is trying to use this report on a weekly basis to review quoting accuracy and identify opportunities for improvement, but that becomes difficult if the report isn’t using actual job costs.

From what I’ve found so far, the issue may stem from the fact that a single job can satisfy demand from multiple sales orders, so the relationship isn’t always one-to-one. However, most of our jobs are Make To Order, so I would have expected the report to still provide meaningful actual margin information.

My questions are:

  • Is the Sales Gross Margin report the correct report for analysing actual job profitability?

  • Is there a better standard report that uses true job costs?

  • Do I need to build a custom BAQ from scratch to achieve this?

  • Does anyone have a BAQ or dashboard they use to report actual job cost versus sales revenue and calculate true margins?

Any advice would be appreciated.

Thanks.

2

Hi @MackK

Try this link Anyone Have Sales Gross Margin Dashboard?

3

Some things to consider.

Sales gross margin takes the costs on the job at time of shipment.

Are all your materials issued prior to adding to packing slip?

Is you job fully complete? Not just what yo need to ship that day. If you have multiple orders linked to the same job you may see it here

Those two can cause large variances in what you see on the SGM report and what the job actually closes at

4

We’ve experienced an issue with our job cost reporting if we have not run the Capture COS/WIP process. Try running that process prior to looking at your costs.

5

Thanks this had some pearlers in it

6

Glad to see you are taking on Aussie colloquialisms :slight_smile:

7

Haha Aussie born and bred mate

8

Where is your company located? Sharpe?

9

Yeah Sharpe is correct, our head office is out at Roma and we have another workshop in Brisbane, which is where I’m based.