Which product brings in the most money: revenue analysis by supplier

How to See Which Supplier’s Products Sell Best and Generate the Highest Net Profit?

To see which supplier’s products sell best and generate the highest income, Torgsoft uses a special mode — «Revenue Analysis by Suppliers». This tool makes it possible to clearly evaluate sales performance by supplier and quickly understand which products a store owner should focus on.

You can find this report in the main menu under Analysis — Revenue Analysis by Suppliers.

How to Set Up the Report and Find the Most Profitable Products

1. Setting filters. First, specify the Analysis Period and, if necessary, select the Accounting Center (to view results for a specific store or for the entire retail chain). If the «Automatic data update» setting is enabled in the upper-left corner, the information on the screen will update immediately after the filters are changed; if it is disabled, you need to click the Refresh button.

2. Visual ranking (best sales). To instantly see the leaders, look at the lower part of the window where the charts are located:

•    The chart on the left displays revenue data sorted from the highest value to the lowest.

•    The chart on the right (in list form) shows the ranking as a percentage. The first item in this list is the product (or supplier) that sells the most or generates the highest profit, followed by the rest in descending order. Using this same report, you can also analyze sales of products from a specific manufacturer or brand.

3. Sorting the table. In the main table, you can click the header of any column (for example, «Revenue» or «Sales»). After the first click, the data will be sorted from highest to lowest, immediately showing the supplier with the highest net profit. The next click will change the sorting direction.

What Data Is Displayed in the Table 

The report shows the following financial indicators for each supplier:

• Product supplier

• Supplier amount (product value at purchase prices)

• Cost of sales

• Sales

• Returns

• Proceeds (the money you received from customers)

• Revenue (your net profit from selling this supplier’s products)

Data details (control buttons). To examine the data more deeply, use the buttons at the top of the window:

• Sales: select a supplier and click this button. A window will open with a detailed list of all receipts (sales) of this supplier’s products for the selected period, including article numbers, quantities, and amounts.

• Invoices: allows you to view goods receipt invoices from the selected supplier with information about the purchase amount, planned proceeds, and actual revenue.

• Cost: forcibly recalculates the cost for the latest period, which is necessary for the most accurate calculation of profit (Revenue).

• Export: you can save this report using the Export to Excel or Export to HTML buttons for further work or for sharing with management.

Important nuances during analysis:

• In «Revenue Analysis by Suppliers», the sales amount is calculated taking into account the discounted price that was valid at the moment the product was sold to the customer.

• If an inventory count was previously carried out in your database and the goods were received as surplus, such goods are automatically assigned to the system counterparty «RECEIPT FROM INVENTORY COUNT». They will not be displayed under the actual supplier who originally delivered them.

Alternative Report for Consignment Goods

If your business model involves taking goods from suppliers on consignment and you need not only to see the overall profit but also to find out how much money you owe the supplier for the goods sold, the report Analysis — Sales Analysis of Supplier Goods on consignment is better suited for you. This report calculates product movement using the FIFO algorithm (first in — first out) based on exact purchase prices and shows your current debt to the supplier only for those goods that have already actually been sold to customers.