Profit calculated on each individual sales invoice
Bill-wise profit, also known as invoice profit, is the profit calculated on each individual sales invoice by comparing the selling amount with the cost of the items sold in that specific transaction. It breaks down profitability at the most granular level — per bill — rather than showing aggregate profit over a period. For each invoice, the system calculates: Profit = Total Selling Amount (excluding GST) minus Total Cost of Goods Sold (based on the purchase cost or valuation method like FIFO or weighted average). This approach allows Indian business owners to identify which sales are highly profitable, which are barely breaking even, and which are being sold at a loss. It is particularly valuable for businesses that offer variable discounts, negotiate prices with different parties, or deal in items with frequently changing purchase costs. Bill-wise profit analysis helps identify unprofitable customers, loss-making product lines, or salespeople who give excessive discounts. For small and medium Indian businesses — like kirana stores, wholesale distributors, or garment retailers — understanding profit at the invoice level is often more actionable than looking at monthly P&L statements, as it highlights exactly where money is being made or lost.
Vikram runs a mobile accessories wholesale shop in Ahmedabad. He generates the bill-wise profit report for the week and examines two invoices. Invoice #1042 to RetailMart: 50 phone cases sold at Rs. 150 each (Rs. 7,500), cost was Rs. 90 each (Rs. 4,500), Profit = Rs. 3,000 (40% margin). Invoice #1045 to QuickShop: 100 tempered glass sold at Rs. 35 each (Rs. 3,500), cost was Rs. 30 each (Rs. 3,000), Profit = Rs. 500 (14.3% margin). Vikram realises that while Invoice #1045 had higher quantity, the margin was very thin. He decides to renegotiate the rate with QuickShop or find a cheaper supplier for tempered glass to improve profitability.
Bill Profit = Total Selling Amount (excl. GST) - Total Cost of Goods Sold (based on FIFO / Weighted Average cost)The cost price is determined by the inventory valuation method you have configured — typically FIFO (First In First Out) or weighted average cost. Under FIFO, the cost of the oldest stock is used first. Under weighted average, the cost is the average of all purchase prices weighted by quantity. The system automatically picks the correct cost at the time of sale, so your bill-wise profit reflects the actual cost of the specific stock that was sold.
No, bill-wise profit is calculated on the base amount excluding GST. Since GST is a pass-through tax — collected from the buyer and paid to the government — it is not considered income or expense for profit calculation. The formula uses the taxable value (selling price before GST) minus the cost of goods sold to arrive at the gross profit per invoice.
Yes, in Stock Register you can filter the bill-wise profit report by customer (party), date range, item, or salesperson. This helps you analyse profitability for a specific dealer, identify seasonal trends, or evaluate the performance of your sales team based on the margins they achieve on their invoices.
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