SmartMoving calculates revenue and profitability for materials based on how the materials are sold, either on their own or alongside packing and unpacking services. This distinction ensures your job reports accurately reflect margins.
Cost of Goods Sold (COGS)
Each material item has a cost of goods sold (COGS), which is how much your company pays for the item, not what you charge the customer.
Example: A small box may have a COGS of $1.
These costs are automatically applied when the job is closed.
Scenario 1: Selling Materials Only
If you sell materials without any packing or unpacking services, only the item’s COGS is applied in profitability reports.
Example:
Material sold: 1 small box
Charge to customer: $2
COGS: $1
Profit: $1
Your report will show $2 in revenue and $1 in profit.
Scenario 2: Selling Materials with Packing/Unpacking Charged per Container
When you provide packing or unpacking services and charge by the number of containers (e.g., boxes) packed or unpacked, SmartMoving includes all related charges in the revenue calculation:
Charge for packing the container
Charge for unpacking the container
Charge for the material item itself
Example:
Pack small box: $5
Unpack small box: $3
Material item (box): $2
Total Revenue: $10
COGS: $1
Profit: $9
Your report will reflect $10 in revenue and $9 in profit.
Note: This calculation method only applies when packing/unpacking charges are based on the number of containers used, not when you charge by time, weight, volume, or other methods. Those scenarios are not affected by these profitability updates.
How This Appears in Reports
When a job is closed:
COGS for each material item is automatically applied via expense rules.
Revenue reflects whether the item was sold alone or as part of per-container packing/unpacking services.
Profitability is calculated as the difference between total charges and COGS.
Key Takeaway:
Sales Type | What’s Included in Revenue & Profit |
Selling materials only | Material item charge + COGS only |
Selling with packing/unpacking by container | Packing charge + unpacking charge + material charge – COGS |
This distinction helps you track accurate job profitability and understand which services are contributing to your margins.