The Customer Profitability report pulls its data from Item Fulfillment and Invoice records. The report includes Item Fulfillment records that are not yet invoiced. This causes the negative profit.
To illustrate, say for example, Sales Order 1 and Sales Order 2 are created and have the following related records:
- Sales Order 1 amounting to $10.00
- Item Fulfillment 1 amounting to $10.00
- Invoice 1 amounting to $10.00
- Sales Order 2 amounting to $5.00
- Item Fulfillment 2 amounting to $5.00
The Customer Profitability report will compute the above examples as follows:
| Detail | Total Cost | Total Revenue | Total Profit |
|---|---|---|---|
| Sales Order 1 | $10.00 | $10.00 | $0.00 |
| Sales Order 2 | $5.00 | ($5.00) | |
| Total | $15.00 | $10.00 | ($5.00) |