Analysis — the complete guide
The «Analysis» page answers three questions:
- How much did you earn from goods in the chosen period: revenue, cost of sales and gross margin.
- Where that margin came from: by invoice, by good, by what left the stock.
- What is left to the company after every expense: on the «Profit» tab (for administrators only).
Every figure on the page is worked out at the moment you open it, from your issued and received documents, the stock records and the expenses. Nothing is stored in advance. If a document is cancelled at the tax service, a receipt is confirmed or corrected, or an invoice name is matched to a good, the figures change the next time the page opens — for past periods too.
Important. The analysis is a management report, for you. It is neither a financial statement nor a tax return. Profit tax is not worked out.
Contents
- Where the page is and who sees it
- The period
- The cost method
- The four cards at the top
- What is counted and what is not
- With VAT and before VAT
- How the cost is worked out, step by step
- The «Profit» tab
- The «By invoice» tab
- The «By good» tab
- The «Consumption» tab
- Rounding
- Why the figures differ from other pages
- Frequently asked questions
Where the page is and who sees it
The page is the «Finance» → «Analysis» item of the side menu.
| Who | What they see |
|---|---|
| Anyone who sees the company's documents (every role but the courier) | The «By invoice», «By good» and «Consumption» tabs, and the cards at the top |
| An administrator (with the right to manage finance) | The «Profit» tab too, because it shows salaries and expenses |
| Anyone with the right to manage the stock | Can change the company's cost method right at the top of the page |
The page opens on the tab you used last. The first time, it opens on «By invoice». Every tab has its own address, so you can share a link, or use the browser's «Back» and «Forward» buttons.
The period
At the top of the page you choose the length, and the days on a calendar:
| Length | What it means |
|---|---|
| Day | The chosen day only |
| Week | Seven days, from the chosen day |
| Month | Up to the day before the same day of the next month. «Month from 1 September» is the whole of September; «Month from 15 September» is 15 September to 14 October |
| Quarter | The same way, three months |
| Year | The same way, twelve months |
| Custom | Any «From–To» range: both fields are shown |
- The page opens on the «Custom» length, from the 1st of the current month to its last day. If you choose another length, it is remembered on this device for next time.
- The «From» and «To» fields open a calendar. The month and the year are chosen at its top, and «‹ ›» go back or forward a month. The calendar shades the whole period, and today is marked. If you choose a «From» after «To», «To» moves to the same day.
- The ‹ › buttons move the period back or forward by its own length: September to October, a week to the next seven days. A whole month (quarter, year) moves by a whole month; any other custom range moves by its number of days.
- Quick buttons: «This month», «Last month», «This quarter», «This year».
- The days are Yerevan's calendar days. Both ends are included.
- The period stays the same when you move from one tab to another.
A sale and a purchase belong to the period by their document's supply date. A stock record made by hand (a receipt, a count and so on) belongs to the moment it was recorded.
The cost method
The cost method decides what each unit sold cost. Invoq offers three methods:
| Method | How it works |
|---|---|
| Weighted average (the default) | A unit sold costs the average price of the units on hand. The average is brought up to date after every purchase |
| FIFO (first in, first out) | The oldest units leave first, at the price they were bought at |
| Last purchase price | A unit sold costs what was paid for one unit at the last purchase before the sale |
- The company's method is chosen at the top of the «Analysis» page or in «Settings → Warehouses». Until it is changed, it is «Weighted average».
- A good can have its own method. It is chosen on the good's page («Stock» → the good → «Cost method»), or for several goods at once in the stock list («Set cost method…»). A good with no method of its own is costed by the company's.
- When the method changes, the whole history is worked out again by the new method, past periods too.
Example: the same sale by three methods
10 units were bought at 100 drams, then 10 units at 130 drams (both prices before VAT, with 20% VAT on top). 5 units were sold at 200 drams (before VAT). Revenue: 1 000 drams, with VAT 1 200 drams.
| Method | Cost of 1 unit | Cost of 5 units | Gross margin | Value of the 15 units left |
|---|---|---|---|---|
| Weighted average | 115 (with VAT 138) | 575 (690) | 425, 42.5% (510, 42.5%) | 1 725 (2 070) |
| FIFO | 100 (120) | 500 (600) | 500, 50.0% (600, 50.0%) | 1 800 (2 160) |
| Last purchase price | 130 (156) | 650 (780) | 350, 35.0% (420, 35.0%) | 1 800 (2 160) |
Why: the average is (10 × 100 + 10 × 130) ÷ 20 = 115. FIFO takes the old batch first, at 100. The «Last purchase price» method takes the 130.
Every cost example in this guide was worked out by Invoq's own costing code, not by hand.
The four cards at the top
Under the period are four cards. On each, the large figure is with VAT, and under it is the figure before VAT. The cards always cover the whole period, whatever filter you chose in the tab below.
| Card | What it means | How it is worked out |
|---|---|---|
| Revenue | What the goods lines of your invoices brought in | The sum of the lines of your goods documents supplied in the period that are linked to a good in stock. A return (a reducing correcting invoice) is taken off |
| Cost of sales | What the goods sold cost | Each unit sold × its cost by the good's cost method. The cost of what was returned is taken off |
| Gross margin | What is left of the sales once the cost is taken off | Revenue − Cost of sales. The percent beside it: margin ÷ revenue × 100, to one decimal place |
| Stock value | What the goods left in stock are worth at the end of the period | The units on hand at the end of the period's last day × their cost by the good's method |
Under the cards is the «How these are worked out» section. Opened, it writes out each card's sum with your own figures, for example «Gross margin = revenue − cost of sales. With VAT: 1 200 − 690 = 510 (42.5%)…».
The warning «Some units sold have no known cost… The margin is a partial one.» appears when the cost of a unit sold is not known. For why that happens, see When the cost is not known.
What is counted and what is not
Sales (the revenue)
The lines of your issued goods documents count, if the document is in force:
- its status is «Issued», «Issued with errors», «Approved» or «Awaiting invalidation»,
- or it is an invoice held on Invoq and not sent to the tax service yet («Held — not sent»), neither deleted nor cancelled.
A line counts if it belongs to a good in stock:
- the line carries the good's barcode or your own code, or
- the line's name is matched to the good on the «Matching goods» page. Matching by name works for the lines of goods accounting documents, goods tax invoices, excise invoices and EAEU export accounting documents.
Not counted in the cards or on the «By invoice», «By good» and «Consumption» tabs:
- services (a service has no stock),
- lines whose name is not matched to any good yet,
- lines whose unit cannot be converted to the good's base unit (see Units),
- drafts, and deleted, cancelled and invalid documents.
The revenue from services counts only on the «Profit» tab.
Purchases (the source of the cost)
The lines of your suppliers' goods documents (goods accounting document, goods tax invoice, excise invoice, traceable goods waybill) count as bought, if:
- the document is in force at the tax service,
- the line's name is matched to a good (or the line is split into goods),
- the goods are confirmed, or the document counts without confirmation (see Confirm received goods).
If less arrived than the invoice says, only what arrived counts, at the invoice's price for one unit. If a line's unit was corrected, the quantity counts in the corrected unit, and the amount stays the same.
Stock records made by hand
A receipt by hand, a count's difference, a correction, a move between warehouses, a merge of goods and a record made by a rule have no price of their own. They are valued at the good's cost at that moment (see below).
With VAT and before VAT
Every amount on the page is shown two ways: with VAT and before VAT. The two are worked out independently, but from the same movements, in the same order and by the same method.
- Revenue with VAT: the line's value plus the VAT stated on the line. If the line has no VAT (export, an exempt supply, an accounting document, a company that is not a VAT payer), the two figures are the same.
- Cost with VAT: the same method, in which a unit bought costs what was paid for it, VAT included. If less arrived than the invoice says, the part that arrived carries its share of the invoice's VAT.
- Gross margin with VAT = revenue with VAT − cost with VAT. The percent is worked out on the revenue with VAT.
- Stock value with VAT: the units on hand at their cost with VAT.
Example: a short receipt and VAT
A supplier issued an invoice for 24 units at 1 000 drams (before VAT), with 20% VAT on top. 20 units arrived, and the receipt was corrected to «20 of 24 arrived». Then 5 units were sold at 1 500 drams, with 20% VAT.
| Before VAT | With VAT | |
|---|---|---|
| Revenue | 7 500 | 9 000 |
| Cost of sales | 5 000 | 6 000 |
| Gross margin | 2 500 (33.3%) | 3 000 (33.3%) |
| Stock (15 units) | 15 000 | 18 000 |
The invoice is for 24 000 drams, with 4 800 of VAT. The 20 units that arrived are worth 20 000 drams, and 20/24 of the VAT falls to them — 4 000 drams. The other 4 units (4 000 drams) the supplier owes, and they do not enter the cost.
Why show the figures with VAT as well. A VAT payer offsets the VAT it paid its supplier and passes on to the state the VAT it took from the buyer, so its «real» margin is the one before VAT. The figures with VAT can be compared with the prices you see in your dealings with buyers and on the «Stock» page. For a company that is not a VAT payer, the VAT paid to a supplier is a cost, so its true cost is the cost with VAT.
How the cost is worked out, step by step
For each good, Invoq takes all its movements, from the first up to the end of the period, and goes through them in order of time. The movements before the period's start decide what was in stock at the start, and at what cost. Those inside the period make up the period's figures.
The order
- By day (the supply date, or the moment of the record).
- On the same day purchases come before sales.
- Of two sales on the same day, the first is the one whose document was issued (or created) earlier, then by number.
This matters for FIFO. If two invoices sold the good on the same day, the invoice issued first takes from the oldest batch. The result is stable, and will not change the next time the page opens.
What each movement does
| Movement | What happens |
|---|---|
| Purchase (a received invoice) | The units come in at their price: the line's value ÷ the quantity (in the base unit) |
| Sale (your invoice) | The units go out at the method's cost. This is the cost of sales |
| Return (a reducing correcting invoice) | The units come back at the good's cost at that moment. The return's amount is taken off the revenue, and its cost off the cost of sales |
| Receipt by hand | The units come in at the good's cost at that moment (until the first purchase, the cost is unknown) |
| A count's shortage, a write-off by a rule | The units go out at the method's cost. This is not a sale: it appears on the «Consumption» tab, as «Written off» |
| A count's surplus | As a receipt by hand |
«The cost at that moment» is:
- for Weighted average, the current average,
- for FIFO, the price of the latest batch in stock,
- for Last purchase price, the last purchase price.
Example: two purchases and two sales
| Day | Movement |
|---|---|
| 1 | 10 units bought at 100 drams (1 000) |
| 2 | 4 units sold at 150 drams (600) |
| 3 | 6 units bought at 120 drams (720) |
| 4 | 8 units sold at 150 drams (1 200) |
| Weighted average | FIFO | Last purchase price | |
|---|---|---|---|
| Cost of the day 2 sale | 4 × 100 = 400 | 4 × 100 = 400 | 4 × 100 = 400 |
| The average after the day 3 purchase | (6 × 100 + 6 × 120) ÷ 12 = 110 | — | — |
| Cost of the day 4 sale | 8 × 110 = 880 | 6 × 100 + 2 × 120 = 840 | 8 × 120 = 960 |
| Cost of sales, total | 1 280 | 1 240 | 1 360 |
| Revenue | 1 800 | 1 800 | 1 800 |
| Gross margin | 520 (28.9%) | 560 (31.1%) | 440 (24.4%) |
| Stock: 4 units | 4 × 110 = 440 | 4 × 120 = 480 | 4 × 120 = 480 |
With Weighted average and FIFO, «cost + stock value» always equals what was bought (1 280 + 440 = 1 240 + 480 = 1 720). With «Last purchase price», not always (1 360 + 480 = 1 840). With this method a unit sold is valued at the last price, but it is the oldest units that physically leave the stock, and the stock is valued at their own price. If you need the cost and the stock together to make up what was bought, choose «Weighted average» or FIFO.
Example: a count and a receipt by hand
| Day | Movement | Weighted average | FIFO | Last purchase price |
|---|---|---|---|---|
| 1 | 10 × 100 bought | |||
| 2 | 3 sold | 300 | 300 | 300 |
| 3 | Count: 7 on the books, 5 counted → −2 | written off 200 | 200 | 200 |
| 4 | Receipt by hand: 5 | valued 500 | 500 | 500 |
| 5 | 5 × 120 bought | average 106.67 | ||
| 6 | 6 sold | 640 | 600 | 720 |
| Stock: 9 units | 960 | 1 000 | 1 000 |
The average on day 5: (10 × 100 + 5 × 120) ÷ 15 = 106.666667. The day 6 sale: 6 × 106.666667 = 640.00.
When the cost is not known
A unit's cost is not known when Invoq has no price to value it at. That happens in two cases:
- The good was sold before any purchase, and what it is worth is not known.
- The good came in by hand, or by a count's surplus, before its first purchase.
Invoq never guesses that value and never takes it as zero. Such units are counted apart, and the margin is marked partial. To find those goods in the lists below, choose «Margin partial — some costs unknown» in the «How it went» filter.
Example. 3 units were sold while the good had not been bought yet. Then 10 units were bought at 100 drams, and 2 more were sold.
- The first sale's cost is not known (3 units). The margin is partial.
- The purchase first «covers» the shortfall: 3 of the 10 count as already sold.
- The second sale: 2 × 100 = 200. The stock: 5 × 100 = 500.
If the good had been bought earlier, but more was sold than there was in stock, the missing units are valued at the last known cost. A later purchase covers the shortfall.
What to do. Match the names on the good's purchase invoices (if they are not matched yet), confirm the receipts that are waiting, or check whether there is a supplier's invoice to match for a receipt recorded by hand.
Cost from the product list
If you imported the good from your product list, the list gave a purchase price, and no received invoice has ever given the good a price, the sale is valued at the list's price, and the page says so: «Costed by the product list (…): no invoice yet». As soon as an invoice gives a price, the invoices are used.
If the list gave only a price before VAT, the cost of those units with VAT is unknown, and the margin with VAT is marked partial.
Units
Every calculation is in the good's base unit. A line written in a package (a box, for example) is converted to the base unit (1 box = 12 pieces). If the good has no base unit, the unit its lines are most often written in counts as the base. Lines whose unit cannot be converted stay out of the calculation until you state how the units relate on the «Stock» page.
The «Profit» tab
For administrators only. It shows the period's result after every expense. The tab is a statement with two columns: With VAT and Before VAT.
| Line | What is counted |
|---|---|
| Revenue | All your sales documents supplied in the period — goods and services (goods and services accounting documents, tax invoices, excise, leasing, EAEU export). Waybills and VAT refund invoices do not count. A reducing correcting invoice is taken off |
| of which with no cost of goods | The part of the revenue with no cost worked out: services, and lines matched to no good |
| − Cost of goods sold | The same figure as the «Cost of sales» card above |
| = Gross profit | Revenue − cost of goods sold |
| − Services received | Your suppliers' services documents (accounting documents, tax invoices, leasing), in force, supplied in the period. For a VAT payer, before VAT, since its VAT is offset. For a company that does not pay VAT, with VAT. Documents linked to an expense are not counted here, so that they are not counted twice |
| − Expenses | The expenses paid, by category (rent, utilities…). See below |
| − Salaries | The cost of the approved payrolls. See below |
| − Exchange differences | Only if there are any: see below |
| = Operating profit | Gross profit − services received − expenses − salaries − exchange differences |
Expenses
- An expense counts if it is marked paid and its due day (for a recurring expense, that payment's day; for a one-off, its date) falls in the period. An unpaid expense does not count.
- The amount is what was paid. An expense paid in a foreign currency counts at its value at the CBA's rate, and whatever was paid above that value goes to the «Exchange differences» line.
- If the payment is linked to a supplier's received invoice, the expense counts at the invoice's value: before VAT for a VAT payer, and with VAT in the with-VAT column.
- If the expense is linked to a supplier (each invoice from the supplier fills in its payment), the supplier's services invoices count in the expense's category by their supply date, paid or not.
- An expense entered by hand has no VAT of its own, so it is the same in both columns.
Salaries
- Only approved payrolls count. Each month's cost: the gross salaries (a fixed salary as it is) plus the health insurance the company paid out of its own pocket.
- If the period covers only part of a month, that month's cost is taken in proportion to the days. For example, in a period of 1–15 October, a payroll costing 310 000 drams for October counts as 310 000 × 15 ÷ 31 = 150 000 drams. The page says so: «by the period's days: October».
- If a month's payroll is not approved, the page warns «Salaries are not counted for these months…» and links to the payroll.
- A salary has no VAT, so it is the same in both columns.
Exchange differences
This line appears only for transactions in a foreign currency:
- for expenses paid in a currency, how much was paid above their value at the CBA's rate (a loss),
- less how much the payments received for sales in a currency brought in above the invoices' value (a gain).
A positive figure is a loss and is taken off the operating profit. A negative one is a gain.
VAT by month
Beside the statement is each month's VAT difference in the period: output less input (see the VAT guide). It is not an expense and is not taken off the profit: a VAT payer passes it on from the buyer to the state. If the input is more, it says «input more by …».
Example
Period: 1–15 October, a VAT-paying company (figures before VAT):
| Line | Amount |
|---|---|
| Revenue | 800 000 |
| − Cost of goods sold | 450 000 |
| = Gross profit | 350 000 |
| − Services received | 40 000 |
| − Expenses | 60 000 |
| − Salaries (310 000 × 15 ÷ 31) | 150 000 |
| = Operating profit | 100 000 |
The «By invoice» tab
It answers «where the margin came from», for each of your goods invoices. The sums over all the period's invoices equal the cards at the top exactly, because it is the same calculation, only grouped by invoice.
The columns
| Column | What it means |
|---|---|
| Date | The invoice's supply date |
| Invoice | The invoice's number («No number» for a held invoice not sent yet) |
| Buyer | The buyer's name or TIN |
| Revenue, with VAT / before VAT | The sum of the invoice's goods lines |
| Cost of sales, with VAT / before VAT | Those lines' cost, by each good's method |
| Gross margin, with VAT / before VAT | Revenue − cost |
| Margin, %, with VAT / before VAT | Margin ÷ revenue × 100 |
| Goods lines | How many lines were counted |
| Lines not counted, with VAT / before VAT | The value of the invoice's lines that are not goods (a service, an unmatched name, a unit that cannot be converted) |
- A return (a reducing correcting invoice) is marked «Return», and all its figures are negative.
- Under the list is the Total row.
- The list can be searched by invoice number or buyer, grouped by buyer, month, week or day, and exported to Excel or CSV.
An invoice's lines
When you open an invoice (or right-click it: «Goods lines») you see each of its goods at the price of one unit, as on the «Stock» page:
| Column | What it means |
|---|---|
| Good, Quantity | The good, and the quantity sold in the base unit |
| Selling price | What one unit sold for on this invoice |
| Purchase price | What one unit cost by the good's method: this is one unit's cost |
| Margin per unit | Selling price − purchase price |
| Sold for | The line's revenue |
| Margin | The line's margin and its percent |
- A switch above the table chooses with VAT or before VAT.
- The method is named once, above the table («purchase price by FIFO…»). If the lines' methods differ, it is named on each line.
- If the «Purchase price» differs from the price on the «Stock» page, «In Stock: …» is written under it. The reason: the «Stock» page shows the last purchase price, while this is one unit's cost by the good's method. The two match only with the «Last purchase price» method.
- Clicking a good's name opens its page in «Stock», where the «Movements» list shows which batches each sale took from.
The «By good» tab
Each good's result in the period. The list holds the goods that were bought or sold in the period, or have stock at its end.
The columns
| Column | What it means |
|---|---|
| Good, Code, Unit | The good, its barcode or own code, and its base unit |
| Cost method | The good's method (or «The company's method») |
| Opening stock | The quantity at the start of the period |
| Bought | The quantity bought in the period |
| Bought for, with VAT / before VAT | The value of what was bought |
| Sold | What was sold, less returns |
| Revenue, with VAT / before VAT | The sales' amount, less returns |
| Average selling price | Revenue ÷ quantity sold |
| Average buying price | Bought for ÷ quantity bought |
| Cost of sales | The cost of what was sold, by the method |
| Gross margin, Margin, % | Revenue − cost, and its percent |
| On hand | The quantity at the end of the period |
| Stock value | The value of what is on hand, by the method |
The «Average buying price» is the average of the period's purchases. It is not the cost: the cost depends on the method and on units bought earlier.
Filters and sorting
- Search: by words of the name, or by code.
- Supplier and Buyer: who the good was bought from or sold to in the period.
- Unit.
- Known by: «Barcode», «Own code», «Made from invoice names».
- Cost method.
- How it went: «Sold at a loss», «Margin partial — some costs unknown», «Not sold», «Sold».
- Sort: «Most revenue» (the default), «Highest margin», «Highest margin %», «Most sold», «By name».
- Grouping: by supplier (the good's main supplier), category or warehouse.
With a filter on, the sum of the goods shown is written under the list («Shown: revenue … · cost … · margin …»). The cards at the top stay the whole company's.
A good's details
When you open a good you see:
- «Bought from»: each supplier, the quantity and the average price,
- «Sold to»: each buyer, the quantity, the average price, the cost of those sales and the margin,
- the good's cost method, which whoever manages the stock can change right here.
The «Consumption» tab
It shows what left each good's stock in the period, and at what cost: not only what was sold, but also what was written off by counts' shortages and by rules.
| Column | What it means |
|---|---|
| Invoice names | How many invoice names are matched to this good |
| Opening stock | The quantity at the start |
| Received, Received for | What was bought on received invoices |
| Entered by hand | Receipts by hand, and counts' surpluses |
| Sold, Cost of what was sold | What was sold on invoices, less returns, and its cost |
| Written off, Cost of what was written off | Counts' shortages and write-offs by rules, and their cost |
| Consumed, Cost of consumption | Sold + written off |
| On hand, Stock value | At the end |
When you open a good, its consumption is split by the invoice names the good is made of. For example, if the names «Coca-Cola 0.5L» and «Կոկա-Կոլա 0,5լ» are merged into one good, you see what came in and went out under each name. Records made by hand, and lines written with your code or a barcode, are apart, under «Recorded by hand, or by its own code».
Filters: search, known by, cost method, and «Invoice names» («Matched from invoice names», «Several names merged into one»). The list is sorted by the cost of consumption, largest first.
⚠️ Moves between warehouses. A move is recorded in the stock ledger as two records: out of one warehouse and into the other. At present that pair appears on the «Consumption» tab in both the «Written off» and the «Entered by hand» columns (by quantity they cancel out). With FIFO and «Last purchase price», the units moved can be revalued at the latest batch's price.
Rounding
| What | How |
|---|---|
| Amounts | To the luma (two decimal places), half up |
| One unit's cost inside the calculation | Six decimal places (106.666667, for example): only the final amount is rounded |
| Average prices in the list | Two decimal places |
| Percents | One decimal place |
| Quantities | As they are, not rounded |
Why the figures differ from other pages
| You compare | Why they can differ |
|---|---|
| The «Purchase price» in the analysis and on the «Stock» page | Stock shows the last purchase price; the analysis, the cost by the method. They match only with the «Last purchase price» method |
| The revenue on the «Analysis» card and in the «Issued» list | The card counts only goods lines. Services, unmatched names and units that cannot be converted are left out. The whole revenue is on the «Profit» tab |
| The revenue with VAT in the analysis and the output VAT on the VAT page | The VAT page does not count held invoices not sent yet; the analysis does |
| Last month's figures have changed | A receipt confirmed late, a correction (it applies from the invoice's date), a newly matched name, a document cancelled at the tax service, or a changed method |
| «Cost + stock» ≠ what was bought | See the example above: with the «Last purchase price» method this is expected |
Frequently asked questions
Why is my good not in the list? The names on its invoices are not matched to the good, or it had no movement in the period and has no stock. Open «Stock» → «Match names».
Why is the margin negative? The good was sold below its cost. Check the selling price, the receipt's unit (the supplier may have written «հատ», a piece, instead of the package) and the method. Choose «Sold at a loss» in the «How it went» filter.
The receipt's unit was wrong, and I corrected it. Why did last month's cost change? A correction applies from the invoice's date, so every figure is worked out again from that day. The good's page and the invoice say who corrected it, and when.
Which method should I choose? If prices change often and you want a smooth picture, choose «Weighted average». If the good has a shelf life or batches, and you want to see each batch's real price, choose FIFO. The «Last purchase price» method shows what the good would cost to buy again now. For the method in your books, ask your accountant.
Does the analysis take profit tax into account? No. Profit tax is not worked out.
Is the cost worked out per warehouse? No. The cost and the margin are worked out for the whole company. The stock can be seen by warehouse on the «Stock» page.