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Sales by Item Report

Overview​

The Sales by Item Report provides detailed insights into sales performance at the product level, showing quantity sold, revenue generated, tax amounts, and average selling price for each item. This report is essential for inventory planning, product portfolio analysis, pricing strategy evaluation, and identifying best-selling products.

When to Use This Report​

Use this report when you need to:

  • Identify best-selling and slow-moving products
  • Analyze product-wise revenue contribution
  • Calculate average selling prices across items
  • Plan inventory replenishment based on sales velocity
  • Evaluate product mix and portfolio performance
  • Review pricing effectiveness by product
  • Support product discontinuation or expansion decisions
  • Prepare data for procurement planning

How to Run the Report​

Step 1: Navigate to Sales Reports​

Access through main navigation: Reports → Sales Reports

The Sales Reports page displays available report types.

Step 2: Select Report Type​

Reports Dropdown

Click the Reports dropdown and select Sales by Item Report from the list.

The filter panel updates to show relevant filters for this report.

Step 3: Configure Time Period​

Apply time period filter to define the analysis window:

Time Period Selector

Select from predefined periods or custom range:

  • Click Time Period dropdown
  • Options available:
    • Today - Sales for current day
    • This Week - Current week's item sales
    • This Month - Current month's item sales
    • This Quarter - Current quarter item performance
    • This Year - Annual item sales analysis
    • Custom Range - Select specific start and end dates

The report aggregates all item sales within the selected period, summing quantities and amounts across all sales orders and invoices.

Step 4: Run Report​

Click Run Report button to generate the report.

The system calculates item-wise sales metrics for the selected period and displays results in tabular format.

Understanding the Report​

Report Structure​

The report displays as an item-wise summary table with the following columns:

ColumnDescriptionExample
Item NameProduct/service nameUSB-C Power Adapter, AirPods Pro 3, SV00234, SV002
Quantity SoldTotal units sold in period150, 85, 12, 245
Basic Amount**Total revenue before tax₹3,75,000.00, ₹2,12,500.00
Total TaxTotal GST collected on sales₹67,500.00, ₹38,250.00
Average Price**Average selling price per unit (excl. GST)₹2,500.00, ₹2,500.00

Note: Values marked with asterisk (**) are exclusive of GST as indicated in the footer.

Understanding Key Metrics​

Item Name

Product or service identifier as recorded in the item master. May display:

  • Full product name (e.g., "USB-C Power Adapter")
  • Item code/SKU (e.g., "SV00234", "SV002")
  • Combination of both

Items appear as individual rows, allowing line-by-line analysis of product performance.

Quantity Sold

Total number of units sold across all sales orders and invoices in the selected period. This metric reveals:

  • Product velocity - How fast items move
  • Demand patterns - Which products customers prefer
  • Stock planning - Replenishment quantities needed

High quantities indicate popular items requiring adequate inventory. Zero or low quantities suggest slow-moving items potentially requiring markdown or discontinuation.

Basic Amount (GST Exclusive)

Total revenue generated from this item before adding GST. Calculated as:

  • Sum of (Quantity × Unit Price) across all sales transactions
  • Excludes GST component
  • Net of any line-item discounts applied

This represents the base revenue contribution of each product to your business, useful for comparing product profitability on a like-for-like basis without tax distortions.

Total Tax

Total GST collected on sales of this item during the period. Includes:

  • CGST (Central GST)
  • SGST (State GST) for intra-state sales
  • IGST (Integrated GST) for inter-state sales

Sum across all applicable GST rates if the item was sold at different rates (though typically one item has one tax rate).

This amount must be remitted to the government and helps verify GST liability by product category.

Average Price (GST Exclusive)

Calculated as: Basic Amount ÷ Quantity Sold

This metric reveals the average selling price per unit before tax, helping identify:

  • Pricing consistency - Are prices stable or varying?
  • Discount impact - Lower average suggests heavy discounting
  • Customer segments - Different customers may get different prices
  • Pricing trends - Compare periods to track price changes

Example: If standard price is ₹2,500 but average is ₹2,200, you're giving ₹300 average discount per unit.

Working with Report Data​

Example Scenarios​

Scenario 1: Best-Seller Identification

Run report for "This Quarter" and sort by Quantity Sold descending.

Example results:

  1. USB-C Power Adapter: 850 units, ₹21,25,000 revenue
  2. AirPods Pro 3: 450 units, ₹11,25,000 revenue
  3. Wireless Mouse: 320 units, ₹4,80,000 revenue

These top sellers deserve:

  • Adequate inventory buffer to prevent stockouts
  • Prominent placement in marketing materials
  • Bulk procurement discounts from suppliers
  • Priority in warehouse picking locations

Scenario 2: Slow-Moving Inventory

Sort by Quantity Sold ascending to identify products with zero or minimal sales.

Example results:

  • SV002: 0 units sold (dead inventory)
  • Premium Headphones: 2 units sold in 3 months
  • Specialty Cable: 5 units sold

Actions:

  • Markdown pricing to clear slow inventory
  • Stop replenishing until stock depletes
  • Consider product discontinuation
  • Analyze why products aren't selling (price, quality, demand)

Scenario 3: Revenue Contribution Analysis

Export report and calculate percentage contribution:

  • USB-C Adapter: ₹21,25,000 (35% of total revenue)
  • AirPods Pro 3: ₹11,25,000 (18.5% of total revenue)
  • All other items: ₹28,00,000 (46.5% of total revenue)

Insight: Top 2 products generate over 50% of revenue. This concentration is both opportunity (focus on best sellers) and risk (over-dependence on few products).

Scenario 4: Pricing Strategy Evaluation

Compare Average Price with standard list price to calculate effective discount rate:

Item: USB-C Power Adapter

  • List Price: ₹2,500
  • Average Price: ₹2,200
  • Effective Discount: (2,500 - 2,200) / 2,500 = 12%

If discount policy is 10% maximum, investigate why actual discounts exceed policy. Possible reasons:

  • Sales team over-discounting
  • Promotional pricing not captured separately
  • Volume discounts to large customers

Product Portfolio Analysis​

ABC Analysis

Classify items into three categories based on revenue contribution:

A Items (Top 20% generating 80% revenue):

  • Critical products requiring close monitoring
  • Never allow stockouts
  • Invest in demand forecasting
  • Negotiate best supplier terms

B Items (Next 30% generating 15% revenue):

  • Moderate importance
  • Standard inventory policies
  • Regular review cycles

C Items (Bottom 50% generating 5% revenue):

  • Low priority for inventory investment
  • Consider reducing variety
  • Evaluate discontinuation candidates
  • Minimal safety stock

Matrix Analysis

Create a 2×2 matrix plotting Quantity Sold vs Average Price:

High Price, High Volume = Premium Best Sellers (focus here)
High Price, Low Volume = Luxury/Niche (maintain for completeness)
Low Price, High Volume = Volume Drivers (operational efficiency critical)
Low Price, Low Volume = Question Marks (discontinue candidates)

Inventory Planning Applications​

Reorder Quantity Calculation​

Use Quantity Sold to calculate reorder points and quantities:

Example:

  • Item: USB-C Adapter
  • Quantity Sold This Month: 85 units
  • Average Daily Sales: 85 ÷ 30 = 2.83 units/day
  • Lead Time: 15 days
  • Safety Stock: 7 days

Reorder Point: (2.83 × 15) + (2.83 × 7) = 42 + 20 = 62 units

When stock reaches 62 units, trigger purchase order.

Order Quantity: 2.83 × 30 = 85 units (one month supply)

Seasonal Analysis​

Run report for same period across multiple years:

This Month This Year:

  • AirPods Pro 3: 85 units

Same Month Last Year:

  • AirPods Pro 3: 65 units

Growth: 30.8% year-over-year

Adjust inventory planning for growth trends. Also identify seasonal patterns (e.g., higher sales in Dec-Jan for certain products).

Pricing Optimization​

Price Elasticity Insights​

Compare different periods with price changes:

Period 1 (Old Price ₹2,500):

  • Quantity Sold: 75 units
  • Revenue: ₹1,87,500

Period 2 (New Price ₹2,200):

  • Quantity Sold: 110 units
  • Revenue: ₹2,42,000

Despite 12% price reduction, revenue increased 29% due to 47% volume increase. This suggests price-sensitive demand where lower prices drive higher overall profitability.

Competitive Pricing Check​

Export Average Price data and compare with competitor pricing:

  • If your average is significantly higher: May explain lower volumes
  • If your average is lower: Opportunity to increase margins
  • If similar: Compete on service, quality, or convenience

Understanding Empty/Zero Values​

In the screenshot (Image 4), items show dashes (-) across all quantity and amount columns. This indicates:

No Sales in Selected Period:

  • Items exist in the system but had zero sales
  • Common when viewing very short periods (Today, This Week)
  • Or for newly added items not yet sold
  • Or for seasonal items in off-season

Interpretation: These items are part of your catalog but didn't contribute to sales in the analyzed timeframe. Expand the time period or filter to active items only for more meaningful analysis.

Export and Analysis​

Exporting Data​

Click Export icon to download report data in Excel or CSV format.

Advanced analysis in Excel:

  1. Calculate cumulative revenue percentage for ABC analysis
  2. Create pivot tables by product category
  3. Build charts showing top 10 products by revenue
  4. Compare period-over-period growth rates
  5. Calculate inventory turnover ratio: Sales Quantity ÷ Average Inventory

Quick Tips​

Best Practices

Run this report monthly and focus procurement efforts on the top 20 items by quantity sold to optimize inventory investment and reduce stockout risk.

Compare Average Price with standard list price quarterly to identify pricing discipline issues or opportunities to reduce excessive discounting.

Sort by Quantity Sold ascending annually to identify zero-sale items for catalog cleanup, reducing system clutter and focusing on active products.

Calculate days of inventory on hand by dividing current stock by average daily sales (from this report) to identify overstock situations requiring promotional clearance.

Need help? Contact support at support@bizconnekt.com