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

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

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.

Hi Doreen, 

I have presented this to the team and there is no resolution. Their response was that "Currently, we have no options on changing the mathematical programming of MYOB products. " and that "this is a great idea to suggest to our developers’ team".

I think an accounting package that doesn't incorrectly calculate Business Insights is more than a "great idea", I think it is an imperative, but it seems accuracy in calculations doesn't seem to be as important as I thought it should be.

Just to make clear the issue, following is an actual screen print of a product we sell showing what displays and what is WRONG. The list should show both cost and sell based on GST Exclusive prices and calculate the profit based on the difference, not the difference between the GST inclusive Buy price and GST Exclusive Sell price.