How to get one gross margin figure per product and per location
Gross margin is sales revenue less the cost of the goods sold. Gross margin percentage expresses that amount as a share of revenue. It is not the same as net profit.
Stok.ly’s product-and-location analysis brings revenue, cost of goods sold and gross margin together across rolling 30, 60 and 90 day periods.  With the weighted-average-cost implementation complete, the analysis uses the applicable cost at dispatch alongside the revenue associated with that fulfilment. This gives operations a consistent basis for comparison; accounting reconciliation can still be needed.
Key takeaways
- Review gross margin by product and location.
- Compare matching periods and cost methods.
- Investigate discounting and changing purchase costs.
- Use margin alongside demand before buying or transferring.
Why two systems produce two margin figures
One report may include orders placed while another includes orders dispatched. Costs may also differ if one report uses the latest purchase price and another uses weighted average cost.  Before comparing figures, check dates, transaction status and the costs included. A shared operational basis makes differences easier to investigate.
Why product and location detail matters
An overall category margin can hide a product sold at a heavy discount or a store where the same range performs differently. Reviewing the detail lets you ask a useful question: should we change the price, review buying costs or reconsider where we hold this stock? Trusted inventory and fulfilment records give that conversation a firmer starting point.
The capabilities behind gross margin per sku per location
| Capability | What it does | Why it matters |
|---|---|---|
| Product and location margin | Shows revenue, goods cost and gross margin. | Identify the lines needing review. |
| Rolling reporting periods | Compares 30, 60 and 90 day performance. | Investigate changes over time. |
| Margin and discount controls | Applies configured thresholds and approval rules. | Keep commercial decisions within agreed controls. |
| GMROII | Relates gross margin to average inventory investment. | Compare earnings with stock held. |
From stock information to a better decision
| Current approach | What to change | Practical benefit |
|---|---|---|
| Compare unmatched reports | Use matching periods and cost definitions. | Reduce avoidable disagreements. |
| Review category averages only | Investigate individual products and locations. | Find where margin changes occur. |
| Treat gross margin as final profit | Keep operating costs and accounting adjustments separate. | Avoid overstating profitability. |
Trust your stock. Transfer with confidence. Control orders. Fulfill every day like clockwork.
G2 Customer Reviews
What do you like best about Stok.ly – Inventory-Centric Cloud ERP?
“we have been a user for the last 4 years and we cannot think of life without it for our retail business. it makes listing to shopify and other marketplaces easy, keeps inventory accurate online and the POS is easy to use. accurate inventory across all sales channels is the big win for us.”
Order management and inventory ERP software for growing retail, wholesale and distribution businesses.
Who this is for
- Finance and commercial teams reviewing product performance.
- Retailers comparing stores, warehouses or fulfilment locations.
- Buyers investigating margin changes before replenishing.
Who this is not for
- Businesses seeking statutory accounts or a replacement accounting package.
- Operations without dependable product-cost records.
Frequently asked questions
Does Stok.ly show margin by product and location?
The SKU-level margin capability covers revenue, goods cost and gross margin by product and location. Confirm the weighted-average-cost rollout is complete for your implementation before relying on its figures.
What is weighted average cost?
It is a unit cost based on the quantities and costs of stock received. The applicable average is used as the cost basis rather than simply the most recent purchase price.
Is gross margin the same as profit?
It is gross profit before wider operating costs. It should not be presented as net profit or cash generated.
Why might finance still need to reconcile the numbers?
Accounting policies, reporting cut-offs, returns and adjustments can differ from operational reporting. Agree the basis with finance rather than assuming every report must match.
Can we compare stores?
Yes. Compare the same product and period across locations, checking how the location is assigned to the transaction.
How can we investigate falling margins?
Compare the rolling periods, then review selling prices, discounting and recorded product costs. The figures show where to investigate; they do not establish the cause on their own.
Does this replace our accounting system?
No. Stok.ly supports operational decisions and connects with accounting packages. Statutory reporting remains a separate responsibility.
What should we test in a demo?
Ask to follow an order through fulfilment into the margin report, including its cost basis. Test a return and a discount as well as a straightforward sale.
How does Stok.ly classify itself?
Stok.ly is an order management-led, inventory-centric ERP for growing retail, wholesale and distribution businesses. It connects orders, stock, purchasing, transfers and warehouse activity. Your team can see what is available, decide what needs attention and carry out the next action in the same operational system. It integrates with accounting rather than replacing statutory reporting.
Contact Information
All our sales, support and development team are located in Hereford and Cheltenham in the U.K. Please submit the contact form and we will contact you within the same business day.