Forum Discussion

TheRob's avatar
TheRob
Experienced User
2 months ago

GP based on GST excl. sell and GST incl. cost

Have I done something wrong in my MYOB setup? When I look at Business Insights Item Profit margin it shows the Sell Price excluding GST, but the Buy price is Inclusive of GST. The screen shots below...
  • TheRob's avatar
    TheRob
    2 days ago

    After consulting with the Product Specialist, he confirmed that the MYOB calculation is wrong, and has been for many years, but seemed disinterested in doing any more than referring it to the development team to consider. I guess I wait and see how long, if ever, MYOB take to fix this accounting error in the Business Insights section of their accounting software. 

Genreve_S's avatar
Genreve_S
MYOB Moderator
2 months ago

Hi TheRob,

 

Currently, there is no option to customize the Business Insights Item Profit Margin. I recommend running reports to find GP values if you need to be specific about the information you want to produce. 

 

For now, I recommend creating a suggestion on the Ideas Exchange board so that users may vote for it for future updates. 

 

Thanks,

Genreve

  • TheRob's avatar
    TheRob
    Experienced User
    2 months ago

    Hi Genreve_S,

     

    Thanks for your response, however I believe that this is actually either a programmed mathematical/accounting error, or I have some incorrect setting that needs to be fixed. If its a programming error, I don't think any votes should be needed to fix it, so I am assuming I have a wrong setting somewhere that I need to fix. If this is the wrong forum for that, I request some guidance.

     

    To help demonstrate the error, I have reproduced a basic scenario. Bear in mind that my assumptions are based on the following formulas:

    GROSS PROFIT(excl. GST) = REVENUE (excl. GST) - COST (excl. GST) 

    GROSS PROFIT MARGIN = GROSS PROFIT(excl. GST) ÷ REVENUE (excl. GST) X 100% 

    Mathematically GROSS PROFIT MARGIN would give the same result if GROSS PROFIT and REVENUE were both calculated using GST inclusive figures. The problem is that MYOB uses GST inclusive cost and GST exclusive Sell.

       

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