If you are running jobs and projects on a regular basis, understanding your gross margin dollars and gross margin percentage on those jobs is a critical key to your success.
However, if you run the Job Profitability Summary report in QuickBooks (via Reports > Jobs, Time and Mileage), all you see is the total revenue, total cost, and gross margin dollars ($ Diff) for the job on the report, as shown below:
ALERT - ADDING THE % DIFFERENCE DOESN'T PROVIDE GROSS MARGIN PERCENT AS YOU MIGHT THINK
With just two clicks, you have the ability to add a "% Diff" column to this report.
- Run the same report as above
- Click the "Customize Report" button
- Click the % Difference check box on the "Display" tab
Here is how the report looks now:
I would think the "% Diff" column represents the gross margin % of the job. It doesn't appear to do that.
In the "family room" job above, I would figure the gross margin % at 29.7% (profit of $911 / revenue of $3,061). QuickBooks is showing 42.4%, which is the profit of $911 / the cost of $2,150.
Does this seem a bit odd to you? Sure does to me!
Am I missing something here?
If you want to see the calculation of gross margin %, looks like the Job Profitability Report needs to be exported to Excel for additional calculations.
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