Cost Basis and Invoice Profitability

Learn how to use cost basis tracking to determine invoice profitability.

By recording the costs of your line items internally, you can easily track the cost basis and profit margins of your estimate or invoice. Don’t want team members to see the costs of the line items? Although your item list can store the unit cost, you can hide the unit costs from your team members when they create estimate or invoices.

(Note: If you have not entered costs for your line items, a cost basis cannot be generated.)

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Enabling Invoice Cost Basis

To enable invoice cost basis, navigate to Company Settings in the left-side menu and click Estimates & Invoices. Then click Advanced in the sub header. On the Advanced Invoice Settings page, toggle Invoice Cost Basis on.

Then select the visibility of unit costs, either Managers and Service Agents or Managers only. When you’ve made your selection, press Save. 

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Viewing Invoice Cost Basis

Now, you’ll want to open an existing invoice record or create a new invoice. Once you’ve entered your line items with their respective unit costs and the other relevant information, scroll down to the bottom of the page and click Save to create the invoice.

Then, on the Invoice Record page, click on Cost Basis in the top menu.

On this page, you’ll see your costs and profit margin on each line item as well for the job overall. If you need to add additional expenses not documented on the invoice record, select Add New Expense. You can export this page by selecting Export.

Reminder: Discounts will not appear on the invoice cost basis tab and are not factored into the cost basis calculation. The total invoice amount displayed reflects the pre-discount total.

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Video Tutorial

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