I calculated the margin for a product using the formula, but the margin obtained using the formula is different from the margin shown in the Product Sales report. What is the reason for this?

Note: This FAQ is only applicable for organizations integrated with Zoho Inventory, utilizing the Warehouses and Transfer Orders features in Zoho Books.

Note: The Warehouses feature is available only for certain plans of Zoho Books. Visit the pricing page to check if it’s available in your current plan.

The mismatch in the calculated margin could be due to transfer orders. If you have enabled the Warehouses feature in your Zoho Books organization and you have created multiple warehouses, you can create transfer orders to move items from one warehouse to another. If you haven not entered the cost price and selling price of the items for the destination warehouse, the initial cost price and selling price entered while creating the item will be considered for the destination warehouse.

In such cases, the formula to calculate margin is as follows:

The margin is calculated using the following formula:

Margin = [(Sales Price - Cost Price of destination warehouse) / Sales Price] * 100

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