Margin Calculations Clarification

Hi all,

Is anyone able to clarify the calculation being used for the Margin by Customer Type report please? I’m particularly looking to check on the VAT treatment of the various fields in the report and how they feed into the reported margin.

My assumption was that it would be (Total Value - Total cost) / Total Value but that is coming out 4 - 7% lower than the margin shown in the report.

By multiplying the Total Value (but not any of the other fields) by 1.2 I can then replicate the margins as you’re reporting them, but that would seem to suggest either that the revenue and cost fields in this report are inconsistently including/excluding VAT, or that the reported margin is calculated on numbers which don’t include/exclude it consistently?

Would be really grateful if anyone can help point me at what I’m missing here.


1 Like

Thanks for the question, Matt. You’re right; there was a situation here where the margin figure may not have been correct (it was correct in most situations, but not all). We’ve fixed this now so that this figure will always be correct. I can confirm all other figures in the table were always correct, and only the “Margin by customer type” report was affected (“Margin by invoice” was not affected by this issue).

I’m sorry for the confusion here, and thank you for bringing this to our attention.