diff --git a/erpnext/accounts/report/gross_profit/gross_profit.py b/erpnext/accounts/report/gross_profit/gross_profit.py
index 12dc541..e293735 100644
--- a/erpnext/accounts/report/gross_profit/gross_profit.py
+++ b/erpnext/accounts/report/gross_profit/gross_profit.py
@@ -4,62 +4,81 @@
 from __future__ import unicode_literals
 import frappe
 from frappe import _
-from erpnext.accounts.reports.gross_profit import gross_profit_generator
+from erpnext.accounts.report.gross_profit_common import GrossProfitGenerator
 
 def execute(filters=None):
 	if not filters: filters = {}
+	filters.update({"group_by": "name"})
+	source_data = GrossProfitGenerator(filters)
 
-	stock_ledger_entries = get_stock_ledger_entries(filters)
-	source = get_source_data(filters)
-	item_sales_bom = get_item_sales_bom()
+	print source_data.retr()
 
-	columns = [_("Sales Invoice") + "::120", _("Link") + "::30", _("Posting Date") + ":Date", _("Posting Time"),
-		_("Item Code") + ":Link/Item", _("Item Name"), _("Description"), _("Warehouse") + ":Link/Warehouse",
-		_("Qty") + ":Float", _("Selling Rate") + ":Currency", _("Avg. Buying Rate") + ":Currency",
-		_("Selling Amount") + ":Currency", _("Buying Amount") + ":Currency",
-		_("Gross Profit") + ":Currency", _("Gross Profit %") + ":Percent", _("Project") + ":Link/Project"]
-	data = []
-	for row in source:
-		selling_amount = flt(row.base_amount)
-		total_selling_amount += flt(row.base_amount)
+	return None, None
 
-		item_sales_bom_map = item_sales_bom.get(row.parenttype, {}).get(row.name, frappe._dict())
+# 	columns = get_columns(filters.group_by)
+	
+# 	data = []
+# 	for row in source_data:
+# 		print row
 
-		if item_sales_bom_map.get(row.item_code):
-			buying_amount = get_sales_bom_buying_amount(row.item_code, row.warehouse,
-				row.parenttype, row.name, row.item_row, stock_ledger_entries, item_sales_bom_map)
-		else:
-			buying_amount = get_buying_amount(row.item_code, row.qty, row.parenttype, row.name, row.item_row,
-				stock_ledger_entries.get((row.item_code, row.warehouse), []))
+# 	return columns, data
 
-		buying_amount = buying_amount > 0 and buying_amount or 0
-		total_buying_amount += buying_amount
+# def get_columns(group_by):
+# 	pass
 
-		gross_profit = selling_amount - buying_amount
-		total_gross_profit += gross_profit
+# def get_data(group_by, source_data):
+# 	pass
 
-		if selling_amount:
-			gross_profit_percent = (gross_profit / selling_amount) * 100.0
-		else:
-			gross_profit_percent = 0.0
+# def execute(filters=None):
+# 	if not filters: filters = {}
 
-		icon = """<a href="%s"><i class="icon icon-share" style="cursor: pointer;"></i></a>""" \
-			% ("/".join(["#Form", row.parenttype, row.name]),)
-		data.append([row.name, icon, row.posting_date, row.posting_time, row.item_code, row.item_name,
-			row.description, row.warehouse, row.qty, row.base_rate,
-			row.qty and (buying_amount / row.qty) or 0, row.base_amount, buying_amount,
-			gross_profit, gross_profit_percent, row.project])
+# 	stock_ledger_entries = get_stock_ledger_entries(filters)
+# 	source = get_source_data(filters)
+# 	item_sales_bom = get_item_sales_bom()
 
-	if total_selling_amount:
-		total_gross_profit_percent = (total_gross_profit / total_selling_amount) * 100.0
-	else:
-		total_gross_profit_percent = 0.0
+# 	columns = [_("Sales Invoice") + "::120", _("Link") + "::30", _("Posting Date") + ":Date", _("Posting Time"),
+# 		_("Item Code") + ":Link/Item", _("Item Name"), _("Description"), _("Warehouse") + ":Link/Warehouse",
+# 		_("Qty") + ":Float", _("Selling Rate") + ":Currency", _("Avg. Buying Rate") + ":Currency",
+# 		_("Selling Amount") + ":Currency", _("Buying Amount") + ":Currency",
+# 		_("Gross Profit") + ":Currency", _("Gross Profit %") + ":Percent", _("Project") + ":Link/Project"]
+# 	data = []
+# 	for row in source:
+# 		selling_amount = flt(row.base_amount)
+# 		total_selling_amount += flt(row.base_amount)
 
-	data.append(["Total", None, None, None, None, None, None, None, None, None, None, total_selling_amount,
-		total_buying_amount, total_gross_profit, total_gross_profit_percent, None])
+# 		item_sales_bom_map = item_sales_bom.get(row.parenttype, {}).get(row.name, frappe._dict())
 
-	return columns, data
+# 		if item_sales_bom_map.get(row.item_code):
+# 			buying_amount = get_sales_bom_buying_amount(row.item_code, row.warehouse,
+# 				row.parenttype, row.name, row.item_row, stock_ledger_entries, item_sales_bom_map)
+# 		else:
+# 			buying_amount = get_buying_amount(row.item_code, row.qty, row.parenttype, row.name, row.item_row,
+# 				stock_ledger_entries.get((row.item_code, row.warehouse), []))
 
+# 		buying_amount = buying_amount > 0 and buying_amount or 0
+# 		total_buying_amount += buying_amount
 
+# 		gross_profit = selling_amount - buying_amount
+# 		total_gross_profit += gross_profit
 
+# 		if selling_amount:
+# 			gross_profit_percent = (gross_profit / selling_amount) * 100.0
+# 		else:
+# 			gross_profit_percent = 0.0
 
+# 		icon = """<a href="%s"><i class="icon icon-share" style="cursor: pointer;"></i></a>""" \
+# 			% ("/".join(["#Form", row.parenttype, row.name]),)
+# 		data.append([row.name, icon, row.posting_date, row.posting_time, row.item_code, row.item_name,
+# 			row.description, row.warehouse, row.qty, row.base_rate,
+# 			row.qty and (buying_amount / row.qty) or 0, row.base_amount, buying_amount,
+# 			gross_profit, gross_profit_percent, row.project])
+
+# 	if total_selling_amount:
+# 		total_gross_profit_percent = (total_gross_profit / total_selling_amount) * 100.0
+# 	else:
+# 		total_gross_profit_percent = 0.0
+
+# 	data.append(["Total", None, None, None, None, None, None, None, None, None, None, total_selling_amount,
+# 		total_buying_amount, total_gross_profit, total_gross_profit_percent, None])
+
+# 	return columns, data
diff --git a/erpnext/accounts/report/gross_profit_common.py b/erpnext/accounts/report/gross_profit_common.py
new file mode 100644
index 0000000..ebbab73
--- /dev/null
+++ b/erpnext/accounts/report/gross_profit_common.py
@@ -0,0 +1,151 @@
+# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe.utils import flt
+
+class GrossProfitGenerator(object):
+	def __init__(self, filters=None):
+		self.filters = frappe._dict(filters)
+		self.load_invoice_items()
+		self.load_stock_ledger_entries()
+		self.load_sales_bom()
+		self.load_non_stock_items()
+		self.process(filters.group_by)
+
+	def process(self, group_by):
+		self.grouped = {}
+		for row in self.data:
+			row.selling_amount = flt(row.base_amount)
+
+			sales_boms = self.sales_boms.get(row.parenttype, {}).get(row.name, frappe._dict())
+
+			# get buying amount
+			if row.item_code in sales_boms:
+				row.buying_amount = self.get_buying_amount_from_sales_bom(row, sales_boms[row.item_code])
+			else:
+				row.buying_amount = self.get_buying_amount(row, row.item_code)
+
+			# calculate gross profit
+			row.gross_profit = row.buying_amount - row.selling_amount
+			if row.selling_amount:
+				row.gross_profit_percent = (row.gross_profit / row.selling_amount) * 100.0
+			else:
+				row.gross_profit_percent = 0.0
+
+			print row ####
+			# add to grouped
+			# if self.filters.group_by:
+			# 	self.grouped.setdefault(self.filters.group_by, []).append(row.get(self.filters.group_by))
+			if group_by:
+				self.grouped.setdefault(self.filters.group_by, []).append(row.get(self.filters.group_by))
+
+		if self.grouped:
+			return self.collapse_group()
+		else:
+			return None
+
+		# TODO: append totals
+
+	def collapse_group(self):
+		# sum buying / selling totals for group
+		self.grouped_data = []
+		for key in self.grouped:
+			for i, row in enumerate(self.grouped[key]):
+				if i==0:
+					new_row = row
+					self.grouped_data.append(row)
+				else:
+					print ">>> NEWROW >>>", self.grouped[key] ####
+					new_row.buying_amount += row.buying_amount
+					new_row.selling_amount += row.selling_amount
+
+			new_row.gross_profit = new_row.selling_amount - new_row.buying_amount
+			new_row.gross_profit_percent = ((new_row.gross_profit / new_row.selling_amount) * 100.0) \
+				if new_row.selling_amount else 0
+
+		return self.grouped_data
+
+	def get_buying_amount_from_sales_bom(self, row, sales_bom):
+		buying_amount = 0.0
+		for bom_item in sales_bom[row.item_code]:
+			if bom_item.get("parent_detail_docname")==row.name:
+				buying_amount += self.get_buying_amount(row, bom_item.item_code)
+
+		return buying_amount
+
+	def get_buying_amount(self, row, item_code):
+		# IMP NOTE
+		# stock_ledger_entries should already be filtered by item_code and warehouse and
+		# sorted by posting_date desc, posting_time desc
+		if item_code in self.non_stock_items:
+			# average purchasing rate for non-stock items
+			item_rate = frappe.db.sql("""select sum(base_amount) / sum(qty)
+				from `tabPurchase Invoice Item`
+				where item_code = %s and docstatus=1""", item_code)
+			return flt(row.qty) * (flt(item_rate[0][0]) if item_rate else 0)
+
+		else:
+			# is warehouse copied from DN??
+			my_sle = self.sle.get((item_code, row.warehouse))
+			for i, sle in enumerate(my_sle):
+				# find the stock valution rate from stock ledger entry
+				if sle.voucher_type == row.parenttype and row.parent == sle.voucher_no and \
+					sle.voucher_detail_no == row.name:
+						previous_stock_value = len(my_sle) > i+1 and \
+							flt(my_sle[i+1].stock_value) or 0.0
+						return  previous_stock_value - flt(sle.stock_value)
+
+		return 0.0
+
+	def load_invoice_items(self):
+		conditions = ""
+		if self.filters.company:
+			conditions += " and company = %(company)s"
+		if self.filters.from_date:
+			conditions += " and posting_date >= %(from_date)s"
+		if self.filters.to_date:
+			conditions += " and posting_date <= %(to_date)s"
+
+		self.data = frappe.db.sql("""select item.parenttype, si.name,
+				si.posting_date, si.posting_time, si.project_name,
+				si.customer, si.customer_group, si.territory,
+				item.item_code, item.item_name, item.description, item.warehouse,
+				item.item_group, item.brand,
+				item.qty, item.base_rate, item.base_amount, item.name as "item_row",
+				timestamp(si.posting_date, si.posting_time) as posting_datetime
+			from `tabSales Invoice` si, `tabSales Invoice Item` item
+			where
+				item.parent = si.name and si.docstatus = 1 %s
+			order by
+				si.posting_date desc, si.posting_time desc""" % (conditions,), self.filters, as_dict=1)
+
+	def load_stock_ledger_entries(self):
+		res = frappe.db.sql("""select item_code, voucher_type, voucher_no,
+				voucher_detail_no, posting_date, posting_time, stock_value,
+				warehouse, actual_qty as qty
+			from `tabStock Ledger Entry`
+			where company=%(company)s
+			order by
+				item_code desc, warehouse desc, posting_date desc,
+				posting_time desc, name desc""", self.filters, as_dict=True)
+		self.sle = {}
+		for r in res:
+			if (r.item_code, r.warehouse) not in self.sle:
+				self.sle[(r.item_code, r.warehouse)] = []
+
+			self.sle[(r.item_code, r.warehouse)].append(r)
+
+	def load_sales_bom(self):
+		self.sales_boms = {}
+
+		for d in frappe.db.sql("""select parenttype, parent, parent_item,
+			item_code, warehouse, -1*qty as total_qty, parent_detail_docname
+			from `tabPacked Item` where docstatus=1""", as_dict=True):
+			self.sales_boms.setdefault(d.parenttype, frappe._dict()).setdefault(d.parent,
+				frappe._dict()).setdefault(d.parent_item, []).append(d)
+
+	def load_non_stock_items(self):
+		self.non_stock_items = frappe.db.sql_list("""select name from tabItem
+			where is_stock_item='No'""")