Margin calculation
In addition to the usual procedure of transferring the sales price of an item from its master data to the Sales line, it is also possible to calculate it using a percentage margin. This is often used for specific trade items (e.g. hardware) for which no sales price is available (e.g. if the items were created using Calculation Import) or the margin is more important than the absolute sales price. Basically, from a calculation perspective, the margin is one of the most important prerequisites for making a profit in a trade-oriented company.
Different calculation bases
The margin represents the difference between the selling price and the cost price and is therefore usually expressed as a percentage. DYCE IT-Business Toolkit provides two different methods for the calculation: the trade margin or the costing surcharge. Which method is used is determined via the Sales & Receivables Setup.
A new field is available in the Sales line, with the field name dynamically following the above setup. Here, the percentage margin is calculated by the system as soon as a Sales line is created with the necessary information. The Calculation Base and the other details from the Sales & Receivables Setup are taken into consideration. In addition to the percentage margin, the absolute difference amount is also displayed as Profit Margin (LCY).
In the lines in the Sales Quote, the Trade Margin % or Costing Surcharge % field is displayed by default; in the lines in the Sales Order, the field is available but is not displayed automatically. It can be displayed by personalization.
Trade margin
When entering or changing one of the fields Unit Cost, Trade Margin %, Unit Price Excl. VAT or Profit Margin (LCY), the other fields are recalculated.
| Field | Value |
|---|---|
| Unit Cost | 800 |
| Trade Margin % | 20 |
| Profit Margin (LCY) | 200 |
| Total | 1,000 |
Costing surcharge
If you enter or change one of the fields Unit Cost, Costing Surcharge %, Unit Price Excl. VAT or Profit Margin (LCY), the other fields are recalculated.
| Field | Value |
|---|---|
| Unit Cost | 800 |
| Costing Surcharge % | 20 |
| Profit Margin (LCY) | 160 |
| Total | 960 |