The Profitability report lets MSP operators measure actual gross margin at four levels: the tenant summary, per client, per agreement, and per ticket. It replaces a legacy placeholder that used a hardcoded $50/hr labor cost and a broken invoice–time-entry join.

Open the report at Billing > Reports > Profitability.

Step 1 — Configure cost rates

Before the report shows meaningful data, set your internal labor costs in Settings > Billing > Cost Rates.

Add a rate per user (and optionally a tenant-wide default for unconfigured users).
Each rate has an effective date range so historical analysis stays accurate when rates change.

See 14.2. Tenant Billing Settings — Cost Rates Sub-Tab for the full configuration workflow.

Running the report

Navigate to Billing > Reports > Profitability.
Select a date range using the filter bar (defaults to the current month).
The summary cards load automatically.

Summary cards

The top of the report shows tenant-wide totals for the selected period:

Card	What it shows
Revenue	Total invoiced amount (all currencies converted to tenant default).
Cost	Labor cost calculated from cost rates × hours worked.
Gross Margin	Revenue − Cost, as an amount and a percentage.
Uncosted hours	Hours with no matching cost rate — excluded from the margin calculation. A non-zero value means margin figures are understated.

Additional data-quality warnings appear as banners when present: unapproved hours, unconverted revenue (non-default currencies with no exchange rate), uncosted materials, and currency mismatches.

Per-client drill-down

The client table beneath the summary cards lists every client with invoiced time in the period. Click a client row to expand it to the agreement level, then click an agreement to expand to the ticket level.

Level	What you see
Client	Revenue, cost, margin, and uncosted-hour count for all agreements under that client.
Agreement	Same columns scoped to one agreement.
Ticket	Per-ticket revenue, cost, margin, and attribution quality.

Attribution quality

Each time entry is attributed to an invoice charge in one of two ways:

Quality	Meaning
Exact	The time entry is linked to a specific invoice line item (applies to invoices generated after the July 2026 migration).
Allocated	Revenue is distributed proportionally by hours across entries in the same billing period (fixed-fee, bucket, or pre-migration invoices).

Exact attribution gives precise per-ticket margin. Allocated attribution is an approximation — ticket-level figures should be treated as estimates.

Data-quality warnings

Warning	What it means	How to fix
Uncosted hours	Hours where no cost rate exists for the user + work date.	Add a cost rate in Settings > Billing > Cost Rates.
Unapproved hours	Time entries that have not been approved; excluded from billing and cost.	Review and approve time entries.
Unconverted revenue	Invoice amounts in non-default currencies with no exchange rate on file.	Add exchange rates in Settings > Accounting.
Uncosted materials	Product/material line items with no cost price set.	Add cost prices to the product catalog.
Currency mismatches	Agreements billed in a currency different from the tenant default, affecting consolidated totals.	Informational only; drill to individual agreements for accurate per-currency figures.

Permissions

Action	Required permission
View profitability report	`billing.read`
View cost rates	`billing.read`
Create / edit / delete cost rates	`billing.update`

14.1. Billing Dashboard — navigate to Reports from here.
14.2. Tenant Billing Settings — configure Cost Rates in the Cost Rates sub-tab.
14.12. Generating Invoices — invoices generated after July 2026 produce exact attribution.
14.15. Usage Tracking — usage-based line items flow into material cost calculations.

Navigation

14.24. Profitability Reporting: Measure Gross Margin per Client, Agreement, and Ticket