Revenue Invoice Profitability Analysis: How to Evaluate Procurement Efficiency

Any purchase of goods is an investment that should generate profit. But how can you tell whether a specific delivery was successful? Did the batch of goods pay back the invested funds or, on the contrary, «freeze» capital on the shelves? To answer these questions, the Torgsoft software includes a special management tool — Profitability Analysis of a Goods Receipt Note.

This report allows you to examine the life cycle of each purchase in detail: from the moment the goods are received into stock to the current date, showing how much has been sold, how much remains, what discounts were granted, and what net profit the owner received.

Where can you find the profitability analysis?

In Torgsoft, this report is easy to access and can be opened from three different working modes for convenience:

1. Through the main menu. Analysis — Profitability Analysis of a Goods Receipt Note.

2. From the document register. Warehouse — Goods Receipt Register, select the required note and click the «Profitability of the Selected Goods Receipt Note» button.

3. During goods verification. Document — Goods Receipt Verification — Note Profitability.

What purchase efficiency indicators does the report display?

The software automatically collects data for each item from the selected note and displays key financial metrics. For each product, you will see:

• Quantity indicators: how many units have been sold and how many are still in stock.

• Price indicators: the purchase price (including additional cost) and the set selling price.

• Monetary amounts: the amount for which the goods have already been sold and the amount for which the goods still remain in stock (at purchase prices).

• Losses: the amount and quantity of returns of these goods made by customers, as well as the amount and percentage of discounts actually granted to customers.

• Financial result: sales revenue and the net profit received from each product, taking its cost into account.

A detailed breakdown is also available in the lower part of the window: the software shows the exact sales dates, selling prices, applied discounts, and profit for each individual transaction from this batch.

Practical application: how can you use this data?

Profitability analysis of a receipt note is not just statistics, but a decision-making tool. 

1. Working with deferred payment (credit notes). 

The report form displays the overall percentage of goods sold from this goods receipt note. This is a critically important indicator for analyzing the priority of payment to the supplier. If the payment date for the goods is approaching and the sales percentage for this note is low, the entrepreneur can see that the goods have not yet earned enough to pay for themselves. This is a direct signal to ask the supplier for an additional payment extension. 

2. Evaluation of "frozen" funds. 

Using the «Product Sell-Through» filter, you can instantly sort items into: fully sold goods, partially sold goods, or completely unsold goods. This makes it possible to identify slow-moving items in a recent delivery and promptly mark them down or return them to the supplier. 

3. Analysis of large batches. 

If you group several goods receipt notes into a single «Supply Batch» (for example, a container from China), you can filter the report not by one note, but by the entire batch as a whole.