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Tracking Customer Profitability

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Posted on by MarcRohde

308 User Group Leader

I'm wondering about some best practices others are using in manufacturing companies to track customer profitability.

Like most companies, we have product-related costs down pat -- so when we look at an invoice we know the item's standard cost and we are appropriately reporting things like defect allowances. We also cover things like CO-OP charges that will be handled as credit memos.

What I'm trying to solve is other direct expenses for the customer. For example, we have costs with customers associated with EDI, regulatory, and other transaction costs that don't end up on the invoices or credit memos. They are cost that are associated with a very specific customer account that we are trying to attribute to a customer to evaluate real profitability.

Thanks in advance for your feedback. This has been a bit of an enigma for us without doing a lot of manual data collection and consolidation.

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Kevin Xia Microsoft Employee on at

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Tracking Customer Profitability

Hi,

Depending on your description, you can customize a page, or report, to write query code that displays the information you want to provide a comprehensive view of profitability.

Here's an official document: Report Designer interface - Finance & Operations | Dynamics 365 | Microsoft Learn. This article explains how to navigate through Report designer and how to use the various options to meet your specific requirements.

Best regards,
Kevin
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André Arnaud de Cal... 291,431 Super User 2024 Season 2 on at

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Tracking Customer Profitability

Hi Marc,

One alternative is using the project module and manage all sales orders, deliveries, invoices and posting costs to the project to get a complete financial overview. You can then create a project per customer. You can also consider a customization or the use of an external reporting tool, like Power BI.