## How It Works

Calculating the profit on a unit can be quite complicated for several reasons. For example:

• Expenses could be allocated after the unit was sold and the reporting for that period completed (eg: Warranty work) See Expenses below
• Sometimes just the gross profit (Sold price less Purchased price) is required (eg: Used Unit Tax scheme)
• Sometimes we over/under allow on a Trade-In for different reasons, but we want to still show the profit for each unit. See Adjustment below
• Sometimes we would want to see the departmental profit for Period in which case we would we would take just the Pre-sale expenses for the units sold in that period and then take all the Post-sale expenses in that period (for any unit - even if it was unsold)
• Sometimes we would want to see the profit for a Unit at the current time in which case we would we would take both the Pre-sale and the Post-sale expenses to that Unit.

For example when calculating departmental profit for a period:

Unit 1: Sold 6,000.00 - less - Bought 4,000.00 - less Pre-sale Expenses 500.00 = Profit 1,500.00

Unit 1: Sold 7,000.00 - less - Bought 5,500.00 - less Pre-sale Expenses 800.00 = Profit 700.00

Provisional Profit: 2,200 (Units sold in that period)

Less Post-sale Expenses: 800.00 (All in that period)

Departmental Profit: 1,400.00

## Booking Expenses / Rebates to a Unit

EVOPOS allows you to book parts, labour and non stock items as an internal costs or credits against a unit.

You can use this for:

• PD / Pre delivery
• Refurbishment / Recondition
• Warranty
• Rebates

Expenses are separated into Pre-Sale and Post-Sale so that reporting can be carried out for distinct periods. For example if there was a Post-Sale expense in June for a unit that was sold in April (for which the reporting was already completed). To calculate the departmental Profit for June we would take the Units sold in June, less the cost, the Pre-sale Expenses and any Adjustment figure of those Units, and then deduct all the Post-sale expenses in that period (for any unit - even if it was unsold).

When you book expenses to a unit you can select to book at Cost, Cost+Markup, Retail-Discount or Retail. This is a business decision depending on how owners / management want to show the departmental profits. For example if parts were booked at Retail, Unit profit would be lower and Parts / Workshop profit higher.

Processing the Internal Transaction for Booking Expenses / Rebates to a Unit
1. Build your transaction in the sales screen as per usual, you can enter jobs, items etc.
2. Select the Finish option
3. Select the 'Internal' option on the left menu
4. Select one of the 3 options for Sales Units (Pre-sale, Post-sale or Non specific Unit)
5. After selecting one of the first 2 Sales Units options you should have a field to select the Unit you wish to book the internal transaction to
6. Enter or search for the Unit (normally by Stock No)
7. Select the appropriate Method of costing.
8. Select one of the Save options

Notes:
These are Internal transactions and do not affect sales or tax figures.

If you select Pre-sale expense and the unit was sold in a prior period then the departmental profit figures will not be correct.

If you sell a unit to one of the predetermined Internal contact accounts (Contact ID less than 0), then the Expenses will not show in the standard report

EVOPOS allows you to enter a manual adjustment if the profit of a Unit needs to be adjusted for any reason to give a fair figure. For example:

If we want to show more money allowed on a Trade-In, but we want to still show the true profit for each unit (eg: Bump up), we could increase the Trade-in amount and increase the sold unit price by the same amount. Then to get the 'True Profit' we would enter the increase amount as a negative on the Sold unit and as a positive on the Trade-in.

Likewise, if we want to show less money for the Sold unit, we could reduce the Trade-in amount and reduce the sold unit price by the same amount. Then to get the 'True Profit' we would enter the amount reduced as a positive on the Sold unit and as a negative on the Trade-in.

## Unit Write-down

EVOPOS allows you to enter a Write-down figure for a unit. This is normally only used for writing down the Cost Value for financial reasons, for example old or damaged stock so that the Gross Profit is less.

## Reporting

In Items Units there is a Quick Reports section.

• Select 'Expenses before and after sales' to see a list of any pre/post sale expenses for the currently selected unit.
• Select 'Sales Detailed List' to show the units sold in a period with the various adjustments.
• Select 'Stock Costs', 'Stock Retail' or 'Brochures' to get various formats of stock lists

You can also produce and customise reports in the main Reports section under 'Units'.