How to know the cost of a Sales Order?

I would like to know how to get the cost from a Sales,  can ERPNext do it?

For example, I got a sales and create a Sales order for the client. (I know there is material request from sales order)

Then I may need to outsource/sub-contract some services for this sales, or have some entertainment expenses with the client specific to this sales. So how can I count this non-raw-material part of cost into the sales order?

By relating all direct costs (both materials and services and others) to the sales, then I can know the profitability of this sales.

Anyone can kindly tell me how to do it?

many thanks in advance!!




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Hello Adam,

If the size of each order is very high, separate create Cost Center should be created for each order. All the incomes and expenses incurred for that order can be tagged with its Cost Center. In the Financial Analytics report, you can check Cost Center wise profitability report.

https://erpnext.com/user-guide/accounts/cost-centers-and-budgeting

For orderwise profitability, you can check Gross Profit report. This report will consider delivered items valuation for calculating profitability.

Accounts >> Main Reports >> Gross Profit

Since items are delivered from Delivery Note or Sales Invoice, in this report, you will find profitability based on Delivery Note and Sales Invoice, and not based on Sales Order.




On Thu, Aug 7, 2014 at 9:52 AM, Adam Tong <ad...@gmail.com> wrote:
I would like to know how to get the cost from a Sales, can ERPNext do it?

For example, I got a sales and create a Sales order for the client. (I know there is material request from sales order)

Then I may need to outsource/sub-contract some services for this sales, or have some entertainment expenses with the client specific to this sales. So how can I count this non-raw-material part of cost into the sales order?

By relating all direct costs (both materials and services and others) to the sales, then I can know the profitability of this sales.

Anyone can kindly tell me how to do it?

many thanks in advance!!




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Thanks and Regards,

Umair Sayyed
www.erpnext.com

Not an expert in erpNEXT  but in standard business,  what you are looking for is called OSP - out side processing.

First of all, you should be creating a  work order to track the material & resource cost..........if you pay any external agency then you can use that as a service PO and add to the work order/job as a resource........and this way the cost would be a part of your COGS - cost of goods sold !!!! 



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Dear Umair,

In the gross profit report, all my buying prices are 0.00 ! from where does the system get the buying prices for that report?

The system calculates buying rate based on incoming rate provided on incoming stock transactions (Purchase Receipt, Stock Entry etc). And the calculation follows valuation method (FIFO, Moving Average, Serialized) defined for a item.

Hi Nabin,

I confirmed that Purchase Receipts have the item values in them, however none of these are updating in the Gross Profit report. In fact I am a concerned because when I press the Link icon it shows that the document is not linked to any other document. I think this a major issue in ERPnext, cause all documents in the same sales cycle should be automatically linked, especially as we are passing data and information (like items sold) from one document to the other.

Any idea of how to get Gross profit report to work ?

Regards,
Ahmed

Sorry people; this thread is old; but I also have seen this problem persist, purchase receipts do not update certain critical areas of reports such as profit and loss report; you will find payments for purchases in general ledger and trial balance but not in P&L report; can someone help us with this?

The only way I see now is to register each sale as a project with a cost center and link through purchases and expenses related to that sale to its cost center!

Quite a lot of work for a simple requirement. Instead you can create a custom field in the expenses and purchase forms to show a link to a sales order. Then eventually in Excel you can create a report with VBA to find the net profit for each sale.

Yes, it would be great if something simple can be added to ERPnext, unfortunately I am not a developer.