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profit margin
profit margin in the project I have is 13.1 % not 15.1 % even tho i set it to 15.1 %
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I appreciate the screenshot that shows the profit margin, 5312796.
I'd like to ask how you set the 15.1%. The profit margin is automatically calculated by subtracting the cost (د.ع11747500) from your income (13518125د.ع). Then, the total is divided by the revenue and multiplied by 100. Using this formula, QBO was able to arrive at a profit margin of 13.1%.
For more in-depth information on this topic, you can refer to the following resources:
- What is Gross Margin and How to Calculate It
- Profit Margin: The Low, the High, and How to Track Yours
To ensure that the profit margin is calculated correctly in QuickBooks Online, it's recommended to check if there are any missing sales transactions in the projects. You can review the Project Profitability Report to review the data. Here's how:
- Go to the Projects menu and click the project you want to review.
- Proceed to the Project Reports tab.
- Select Project Profitability, then click the View link in the right-hand corner.
In case you need more resources when working on your projects, I also want to share these articles with you:
- Track Hourly Labour Costs and Profitability by Project in QuickBooks Online
- Change Sub-customers Into Projects QuickBooks Online
Don't hesitate to return to the Community if you have any additional concerns or questions. Our team is always ready to offer assistance and support.
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dear jenop2
thank you for the clarification I have been confused between the Markup and the profit margin
since I set up the Markup of my expenses to 15 percent I thought the profit margin is also be set to 15 percent That was my mistake in understanding the difference between both.
Thank you for your help!
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It's a pleasure to have you here again, 5312796.
I'm happy to hear that my colleague @jenop2 was able to help with your concern. Please know that you're always welcome to post in the Community space for any QuickBooks concerns you may have.
If you require guidance and tools to handle your QuickBooks Online account and finances, you can visit our Support page for additional assistance. This page offers valuable information to enhance your navigation experience and make it more efficient.
Please get back to us. Have a great day.