How profit is calculated
Profit is a trip's confirmed sales minus its supplier costs, or its planned costs until a supplier cost is entered; margin is profit over revenue.
The system works out profit per trip: what customers bought on the trip, minus what you pay suppliers for it. Margin is that profit as a share of what you sold. Profit is not shown per booking.
Revenue
A trip's Revenue is the total of all its confirmed bookings, as sold to the customer, discounts included. Cancelled bookings do not count. Revenue does not wait for the customer to pay: an unpaid booking counts in full.
Costs
A trip's Costs come from one of two places:
- Supplier costs, as soon as the trip has at least one. Each cost counts with its full amount, VAT included. A cost charged Once counts once; a cost charged Per traveller counts once for every traveller on the trip's confirmed bookings (adults, children and infants).
- Planned costs, while the trip has no supplier cost yet: the fixed cost plus the cost per traveller set on the trip, times the travellers booked.
Supplier costs replace the plan completely. The trip's Costs tab shows this with Counted until supplier costs are added or Not counted: supplier costs replace the plan next to the planned costs. Costs entered as Not for one trip are not part of any trip's profit.
Profit and margin
- Profit = Revenue − Costs. It is red when it is a loss.
- Margin = Profit ÷ Revenue × 100, shown with one decimal. A trip with no revenue shows 0%.
Example: a Georgia group trip has 24 travellers and confirmed bookings worth BHD 12,000. The airline charges BHD 4,200 once and the hotel BHD 150 per traveller (BHD 3,600). Costs are BHD 7,800, profit BHD 4,200 and margin 35.0%.
Costs in another currency
A supplier cost in a foreign currency is saved with the exchange rate in force on the day you enter it, and keeps it. When rates move, or when you pay the supplier on another day at another rate, the trip's profit does not change. The difference between the two rates shows only in the accounting export, as an exchange gain or loss.
Bookings are counted at the rate saved on the day they were made. In Reports you can switch to Today’s rates to see what everything is worth now: see Branches, currencies and exchange rates in reports.
Where you see it
- Suppliers and profit: totals for trips departing in the last and next 12 months, Profit by trip and the chart for one trip. See See the profit of each trip.
- Reports → Profit: trips departing in the period you choose, by date, profit or margin.
- The trip's own page.
Seeing profit needs permission to see profit (and to see reports for the two screens above). Seeing supplier costs needs permission to see supplier costs and margins.
Related articles
- See the profit of each tripFind what each trip earns after its supplier costs, and which trips run at a loss or a thin margin, on Suppliers and profit or in Reports.
- Record a supplier costEnter what a supplier charges you for a trip, in its currency, with the due date and the VAT on its invoice, so trip profit is exact.
- Branches, currencies and exchange rates in reportsHow reports add up branches that sell in different currencies, which exchange rate each amount uses, and how to choose the report currency.