How to Add Sales Margin Analysis

Overview:

Sales Margin Analysis is a powerful feature in QNE Cloud Accounting (QCA) that helps businesses evaluate the profitability of their products and services. By comparing sales revenue against the cost of goods sold (COGS), users can identify high-performing items, adjust pricing strategies, and make data-driven decisions to enhance profitability. This guide will walk you through setting up and analyzing sales margins in QCA.

Scenario:

You want to evaluate which products or customers bring the highest profit. Instead of manually calculating margins from sales and purchase data, you can quickly generate the Sales Margin Analysis report to get accurate, real-time profitability insights.

Solution:

1. Go to the Report Center and navigate to the Sales tab.

2.  Under Other Reports, select Sales Margin Analysis.

3. Use the available filters to refine your report output:

• Date: Define the range of transactions you want to include.
• Customer: Filter by specific customer(s) to analyze profitability per client.
• Agent: Select a sales agent involved in the transactions.
• Doc Agent: Choose a document agent if applicable.
• Area: Filter sales data based on geographical or operational areas.
• Category: Select stock or item categories.
• Control A/C: Filter by specific control accounts.
• DocTypes: Choose which document types to include in the analysis (e.g., Sales Invoice, Sales Debit Note, Sales Credit Note, Cash Sales).
  
• Click Preview to generate the report.
  

4. Review the resulting data, which will display:

• Document Number: The unique identifier assigned to each sales transaction.
• Transaction Date: The date the sales transaction occurred.
• Item Code: The product code associated with the sold item.
• Customer Name: The name of the customer involved in the transaction.
• Gross Sales: The total amount before any discounts or deductions.
• Discount: Any reductions applied to the gross sales.
• Net Sales: The sales amount after deducting discounts.
• Cost: The cost of goods sold for the item.
• Profit/Loss Amount: The difference between net sales and costs.
• Profit Margin %: The percentage of profit relative to the net sales.
  

Application:

A trading company wants to evaluate the profitability of its top-selling items for the past quarter. By generating the Sales Margin Analysis report:

• They apply filters for Q2 2025, selecting key customers and product categories.
• The report highlights that Item A has a higher sales volume but a lower profit margin than Item B, which has fewer sales but better profitability

With this insight, the company decides to adjust pricing and marketing strategies to focus on high-margin products, improving overall profitability.

Generating this report regularly helps businesses monitor sales performance, make pricing decisions, and improve their bottom line.