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Can someone please explain the product margin analysis report in accounting

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Marcio Valenzuela

Could someone explain the terms that are in this report, please? I would like to know where these values actually come from:

Average unit price: I assume it’s the average price PER UNIT of all units sold of that category of products but it’s a large number in this case so it almost seems like the sum of all sales for that category  


turnover: is this the traditional Cogs/avg inventory?


Sales gap: I have no idea what this refers to. 

Total Cost: I would think it’s the cost of all units sold 


Total margin vs Expected margin: where does it get the expected margin from?


in one category I have -233,377 total margin. Where does that come from?  I’m sure we don’t sell under the cost so how does that happen?


I'm not able to attach an image!

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Cybrosys Techno Solutions Pvt.Ltd
Best Answer

Hi,

Product margin is the profit that a company makes from sales of a product that you have either manufactured at your company or purchased from another vendor. An effective product margin analysis will help the company to get accurate information on the sales of the product.

The report displays the Name of the product, Internal Reference, Average Sale Unit Price (Average price in customer invoices), Invoiced in Sale (Sum of quantity in customer invoices), Turnover (Sum of multiplication of invoice price and quantity of customer invoices), Sale Gap (Expected sale- turnover), Total Cost (Sum of multiplication of invoice price and quantity of vendor bills), Purchased (Sum of quantity in vendor bills), Total Margin (Turnover- standard price), Expected Margin, Total Margin Rate, and Expected Margin Rate.


For more details, please refer the blog 
https://www.cybrosys.com/blog/an-overview-of-invoice-and-margin-analysis-with-odoo-16-accounting#:~:text=By%20considering%20the%20necessity%20of,tab%20of%20the%20Reporting%20menu.

Hope it helps

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Marcio Valenzuela
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Ok last 2 questions:

1. where does it get the total cost from?

2. Where does it get the expected sales from?

Marcio Valenzuela
Author

Hello, where does the sale gap and total cost come from?

Marcio Valenzuela
Author

it doesnt seem to work on odoo v11. The fields are incorrect and so are the values.

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