FAQ: Sales by Item Breakdown Report

What does "Sales by Item Breakdown" show me?

It shows each distinct product or service you sold during a period, with its quantity, revenue, cost, and (optionally) profit margin. Use it to understand which items drive your revenue and which are most profitable.

How does "Sales by Item Breakdown" differ from "Sales by Contact"?

Sales by Item shows one row per product and totals across all customers who bought it. Sales by Contact shows one row per customer and totals across all products they bought. Use Item Breakdown to analyze product performance; use Contact to analyze customer spending patterns.

Can I see sales for just one product?

Yes, use the Product/Service filter. Select the item, and the report shows only sales for that product. This is useful if you want to track one item's performance over time or compare its sales across periods.

How do I identify my most profitable items?

Export the report to Excel, then sort by the "Gross profit margin" column in descending order. Items at the top have the highest margins. Alternatively, if margin is not shown, calculate it as (Total revenue – Cost) ÷ Total revenue × 100.

Why does an item show zero cost?

Items not tracked in inventory (e.g., services without a cost, or manually-entered items) may show zero or blank cost. Check your product setup to ensure items are linked to an inventory account or unit cost.

Can I compare sales across multiple warehouses?

Yes. Run the report separately for each warehouse (use the Warehouse filter), export to Excel, and compare the results side by side. This helps identify which warehouse is performing best for each item.

What is "Gross profit margin"?

It is the percentage of revenue that remains after paying for the cost of goods sold (COGS). A 50% margin means that for every unit of currency in sales, you keep 50 cents as profit (before operating expenses). Higher margins are better.

Why does a bestselling item have low profit?

An item might have high sales volume but low margin if it has a high cost relative to its selling price. This could mean it's discounted heavily, or its production cost is high. Review the item's pricing and cost to decide whether to adjust price, reduce cost, or discontinue it.

Can I see which customers bought specific items?

Not directly from this report. The Sales by Item Breakdown shows product totals only. To see which customers bought an item, go to the Invoice list or Sales Order list, filter or search for the item, and review the customer names.

Does this report include returned items?

Typically, yes, if returns are recorded as negative sales or return documents. Check with your accountant to confirm whether refunds and returns are included or shown separately.

How often should I run this report?

As often as you need to monitor sales performance. Many businesses run it monthly (for monthly budgeting) or quarterly (for strategic reviews). Some run it daily during promotional periods to track item performance in real time.

Can I set a goal or benchmark for item sales?

The report itself does not have built-in goals or benchmarks, but you can:

1. Export to Excel and add a "Goal" column with your target quantities or revenues.
2. Create a separate Excel file with benchmarks and compare it to the report data.
3. Use your business plan or budget as a baseline and manually compare results.