how to know the cost of a Sales Order?

[Adam Tong]

I would like to know how to get the cost from a Sales,  can ERPNext do it?

For example, I got a sales and create a Sales order for the client. (I know there is material request from sales order)

Then I may need to outsource/sub-contract some services for this sales, or have some entertainment expenses with the client specific to this sales. So how can I count this non-raw-material part of cost into the sales order?

By relating all direct costs (both materials and services and others) to the sales, then I can know the profitability of this sales.

Anyone can kindly tell me how to do it?

many thanks in advance!!

[Umair Sayyed]

Hello Adam,

If the size of each order is very high, separate create Cost Center should be created for each order. All the incomes and expenses incurred for that order can be tagged with its Cost Center. In the Financial Analytics report, you can check Cost Center wise profitability report.

https://erpnext.com/user-guide/accounts/cost-centers-and-budgeting

For orderwise profitability, you can check Gross Profit report. This report will consider delivered items valuation for calculating profitability.

Accounts >> Main Reports >> Gross Profit

Since items are delivered from Delivery Note or Sales Invoice, in this report, you will find profitability based on Delivery Note and Sales Invoice, and not based on Sales Order.

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Thanks and Regards,
Umair Sayyed
www.erpnext.com

[ani das]

Not an expert in erpNEXT  but in standard business,  what you are looking for is called OSP - out side processing.

First of all, you should be creating a  work order to track the material & resource cost..........if you pay any external agency then you can use that as a service PO and add to the work order/job as a resource........and this way the cost would be a part of your COGS - cost of goods sold !!!!