Order Management Margin Calculation

Order Management Margin Calculation :

If the Margin Calculation is based on price, the formula for calculating margin percent for a line is:

((Unit Selling Price – Unit Cost) / Unit Selling Price) * 100

If the Margin Calculation is based on cost, the formula for calculating margin percent for a line is:

((Unit Selling Price – Unit Cost) / Unit Cost) * 100

Order Gross Margin percent is calculated as: 'total order revenue (minus tax) minus total order cost' divided by total order revenue,' or divided by total order cost', if using the alternate formula for Gross Margin Percent.

Gross Margin Display

Gross Margin is most commonly calculated by dividing the difference of the selling price and the

cost by the selling price (or by unit costthis functionality calculates what the gross margin of an

order line and anorder itself is, and also to take action on orders based on business rules that use

Gross Margin.

　

Gross margin hold can be set

Gross Margin:

To Set up for Gross Margin:

Navigate to the Order Management Parameters window. The default for Calculate Margin is No. To use margin, you must enable Calculate Margin control. Choose whether to do the calculation based on Price or Cost. Save your work.

Decide if you want to hold orders that do not meet minimum margin percentages. If you do, decide which order types you want to do this for. Go to the Order Management Transaction Type window and query up each Order Type record and enter the minimum margin percentage. Save each record.

Determine which responsibilities do NOT need to be able to see Gross Margin information in the Sales Orders window and the Pricing & Availability window. Using the System Administrator responsibility, navigate to Applications > Responsibility, define or query up a responsibility with “Orders, Returns Main Menu” attached, and exclude the View Margin function from those responsibilities.

Create a folder for the Sales Orders window, Order Information tab, Other sub-tab to display both or either Margin Amount and Order Margin %, and a folder for the Line Items tab to display any or all of the Cost, Margin Amount and Margin % fields on the Main sub-tab or the Pricing sub-tab. Assign that folder to be the default folder for those responsibilities who can see margin.

Create a folder for the Pricing & Availability window Pricing tab to display any or all of the Cost, Margin Amount and Margin % fields and assign that folder for those responsibilities who are allowed to see margin.