diff --git a/accounts/report/gross_profit/__init__.py b/accounts/report/gross_profit/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/accounts/report/gross_profit/__init__.py
diff --git a/accounts/report/gross_profit/gross_profit.js b/accounts/report/gross_profit/gross_profit.js
new file mode 100644
index 0000000..77ac581
--- /dev/null
+++ b/accounts/report/gross_profit/gross_profit.js
@@ -0,0 +1,11 @@
+wn.query_reports["Gross Profit"] = {
+	"filters": [
+		{
+			"fieldname":"company",
+			"label": "Company",
+			"fieldtype": "Link",
+			"options": "Company",
+			"default": wn.defaults.get_user_default("company")
+		}
+	]
+}
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diff --git a/accounts/report/gross_profit/gross_profit.py b/accounts/report/gross_profit/gross_profit.py
new file mode 100644
index 0000000..a9a4532
--- /dev/null
+++ b/accounts/report/gross_profit/gross_profit.py
@@ -0,0 +1,89 @@
+from __future__ import unicode_literals
+import webnotes
+from webnotes.utils import flt
+
+stock_ledger_entries = None
+item_sales_bom = None
+
+def execute(filters=None):
+	if not filters: filters = {}
+	
+	get_stock_ledger_entries(filters)
+	get_sales_bom()
+	
+	delivery_note_items = webnotes.conn.sql("""select dn.name, dn.posting_date, dn.posting_time,
+		dn.project_name, item.item_code, item.item_name, item.description, item.warehouse,
+		item.qty, item.basic_rate, item.amount, item.name as "item_row"
+		from `tabDelivery Note` dn, `tabDelivery Note Item` item
+		where item.parent = dn.name and dn.docstatus = 1
+		order by dn.posting_date desc, dn.posting_time desc""", as_dict=1)
+	
+	columns = ["Delivery Note:Link/Delivery Note", "Posting Date:Date", "Posting Time", 
+		"Item Code:Link/Item", "Item Name", "Description", "Warehouse:Link/Warehouse",
+		"Qty:Float", "Selling Rate:Currency", "Selling Amount:Currency", "Buying Amount:Currency",
+		"Gross Profit:Currency", "Gross Profit %:Percent", "Project:Link/Project"]
+		
+	data = []
+	for row in delivery_note_items:
+		selling_amount = flt(row.amount)
+		buying_amount = get_buying_amount(row)
+		if selling_amount:
+			gross_profit = selling_amount - buying_amount
+			gross_profit_percent = (gross_profit / selling_amount) * 100.0
+		else:
+			gross_profit = gross_profit_percent = 0.0
+		
+		data.append([row.name, row.posting_date, row.posting_time, row.item_code, row.item_name,
+			row.description, row.warehouse, row.qty, row.basic_rate, row.amount, buying_amount,
+			gross_profit, gross_profit_percent, row.project])
+			
+	return columns, data
+
+def get_buying_amount(row):
+	if item_sales_bom.get(row.item_code):
+		# sales bom item
+		buying_amount = 0.0
+		for bom_item in item_sales_bom[row.item_code]:
+			buying_amount += _get_buying_amount(row.name, "[** No Item Row **]",
+				bom_item.item_code, row.warehouse, bom_item.qty * row.qty)
+		return buying_amount
+	else:
+		# doesn't have sales bom
+		return _get_buying_amount(row.name, row.item_row, row.item_code, row.warehouse, row.qty)
+		
+def _get_buying_amount(voucher_no, item_row, item_code, warehouse, qty):
+	for i, sle in enumerate(stock_ledger_entries):
+		if sle.voucher_type == "Delivery Note" and sle.voucher_no == voucher_no:
+			if (sle.voucher_detail_no == item_row) or \
+				(sle.item_code == item_code and sle.warehouse == warehouse and \
+				abs(sle.qty) == qty):
+					buying_amount = flt(stock_ledger_entries[i+1].stock_value) - flt(sle.stock_value)
+					if buying_amount < 0:
+						webnotes.errprint([voucher_no, item_row, item_code, warehouse, qty])
+						webnotes.errprint(["previous", stock_ledger_entries[i+1]])
+						webnotes.errprint(["current", sle])
+					return buying_amount
+					
+	return 0.0
+
+def get_sales_bom():
+	global item_sales_bom
+	
+	item_sales_bom = {}
+	
+	for r in webnotes.conn.sql("""select parent, item_code, qty from `tabSales BOM Item`""", as_dict=1):
+		item_sales_bom.setdefault(r.parent, []).append(r)
+	
+def get_stock_ledger_entries(filters):
+	global stock_ledger_entries
+	
+	query = """select item_code, voucher_type, voucher_no,
+		voucher_detail_no, posting_date, posting_time, stock_value
+		from `tabStock Ledger Entry` where ifnull(`is_cancelled`, "No") = "No" """
+	
+	if filters.get("company"):
+		query += """ and company=%(company)s"""
+	
+	query += " order by item_code desc, warehouse desc, posting_date desc, posting_time desc, name desc"
+
+	stock_ledger_entries = webnotes.conn.sql(query, filters, as_dict=True, debug=1)
diff --git a/accounts/report/gross_profit/gross_profit.txt b/accounts/report/gross_profit/gross_profit.txt
new file mode 100644
index 0000000..bc21484
--- /dev/null
+++ b/accounts/report/gross_profit/gross_profit.txt
@@ -0,0 +1,21 @@
+[
+ {
+  "creation": "2013-02-25 17:03:34", 
+  "docstatus": 0, 
+  "modified": "2013-02-25 17:03:34", 
+  "modified_by": "Administrator", 
+  "owner": "Administrator"
+ }, 
+ {
+  "doctype": "Report", 
+  "is_standard": "Yes", 
+  "name": "__common__", 
+  "ref_doctype": "Sales Invoice", 
+  "report_name": "Gross Profit", 
+  "report_type": "Script Report"
+ }, 
+ {
+  "doctype": "Report", 
+  "name": "Gross Profit"
+ }
+]
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