# How does RepairDesk calculate profit on a repair?

If you've just started using RepairDesk, you might want to learn how you can associate labor or a spare part in a repair ticket so RepairDesk can automatically work out profit earned on this repair.

Before we get started, lets get yourself acquainted with few terms:

### - Service:

Service is an intangible item which represents total cost of doing a repair (that also includes labor & spare part cost)

i.e. For an iPhone 7 screen replacement if you charge \$249.99 you will create a service item with \$249.99 price. To learn more about how to create service item, please click here

### - Labor or Part:

A technician can also add labor or a spare part i.e. iPhone 7 replacement screen, home button or a battery which will be required to complete a repair job.

here.

## Let’s now talk about how to Create Ticket

1- If you would like to create a troubleshoot ticket for iPhone 7 screen repair hit “Create Ticket” which will open a new window.

Note: If you have just started using RepairDesk & would like to update ticket ID simply click on Ticket number and enter desired value.

2- To start a repair ticket you can enter customer details or click on “search” in case you would like to search from existing customer database. You can search a customer by name, phone number or email address

3- From device details section you can choose device model, select service, set a task finish date & time, assign an employee, enter diagnostic notes & click on add row to save record.

Note: You can also select multiple issues with a customer device or add new device issue.

4- A technician can also add labor or part against each a repair item.

To link a part with each repair select repair reference, choose catalog item & click on add line item so RepairDesk can work out profit earned on this repair.

5. Calculate Profit: We know that Profit = Price - Total Cost.

Suppose there is a repair for iPhone 7 screen replacement. The price of repair is \$249.99. Tax and discount are \$12.25 and \$5 respectively, while the line item total comprising of part cost is \$129.

Now the profit will be calculated as following:
First discount would be subtracted from repair price:
\$249.99 - \$5 = \$244.99

Now a tax will be calculated on this discounted price.
Tax = 5% x \$244.99 = \$12.25

As tax is exclusive in this example, tax would be added to get Subtotal: \$244.99 + \$12.25 = \$257.24
We use the following formula for Subtotal
Subtotal = Repair Price - Discount + Tax

As tax is also applicable on part, therefore Line Total would be:
Line Total = Part Cost + Tax on Part
As the part is tax inclusive in this example therefore
Line Total = \$129

Now from the subtotal we would subtract all costs, which in this example are part cost and tax:
Profit = Subtotal - Tax - Line Total
= \$257.24 - \$12.25 - \$129
Profit = \$115.99

Note: Profit would be visible to admin only.