The system uses the prevailing GL cost when a sales order line item is shipped and also changes the cost in the sales order line item record. However, GL costs on open sales order item records entered before the cost change are not automatically changed when GL costs are changed. This situation could impact any reports that show margin. Consequently, you can use Sales Order Cost Revaluation (7.1.12) to change the GL cost of these records so that gross margin reports will reflect the proper difference between GL costs and selling price.

Use the Sales Order Gross Margin Report (7.15.5) to see the gross margin for all open sales order line item quantities by line item and order. Gross margin is based on the net price charged for the item and the item cost as stored on the order as it is entered.