What is Gross Margin?
Gross margin calculation provides a faster way to evaluate the profitability of an
order, helping the customers to apply the appropriate business rules based on sales
order margin information. This functionality is available in the following forms:
Standard Sales Orders, Quick Sales Orders and Price & Availability form.
Setup steps
The following application responsibility has been used: Order
Management Super User, Vision Operations.
1. Enable Margin Calculation system parameter.
Order Management > Setup > System Parameters> Values
The possible vales for this OM System Parameter are:
Do not calculate – When set to this option, Gross Margin is not calculated.
Price based - calculate Margin% by dividing the difference between Selling Price
and Cost Price by Selling Price
Cost based - calculate Margin% by dividing the difference between Selling Price
and Cost Price by Cost Price.
2. Set Minimum Margin Percent (in case Margin Hold functionality needs to be
implemented) for the Order Transaction Type.
Order Management > Setup > Transaction Types> Define
Query for the Order Transaction Type
3)Create a folder in the Sales Orders, Quick Sales Orders and Pricing &
Availability forms.
The fields: Margin Amount, Margin% and Unit Cost are hidden. In order to make
them visible, go to Folder menu > Show Field…
Choose them from the list of values.
Important: If the fields that contain margin information are made visible on the Sales
Order form, they are visible also on the Quotes window.
4)
1.In the Sales Orders window, Order Information tab, Other sub-tab: create a folder
in order to display both or either Margin Amount and Order Margin %.
2 In Line Items tab, create a folder to display any or all of the Unit 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.
3 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
.
5)Define an item cost for item.
6)Attach the item to a price list
7)Create a sales order and check the gross margin calculation.
Gross margin calculation provides a faster way to evaluate the profitability of an
order, helping the customers to apply the appropriate business rules based on sales
order margin information. This functionality is available in the following forms:
Standard Sales Orders, Quick Sales Orders and Price & Availability form.
Setup steps
The following application responsibility has been used: Order
Management Super User, Vision Operations.
1. Enable Margin Calculation system parameter.
Order Management > Setup > System Parameters> Values
The possible vales for this OM System Parameter are:
Do not calculate – When set to this option, Gross Margin is not calculated.
Price based - calculate Margin% by dividing the difference between Selling Price
and Cost Price by Selling Price
Cost based - calculate Margin% by dividing the difference between Selling Price
and Cost Price by Cost Price.
2. Set Minimum Margin Percent (in case Margin Hold functionality needs to be
implemented) for the Order Transaction Type.
Order Management > Setup > Transaction Types> Define
Query for the Order Transaction Type
3)Create a folder in the Sales Orders, Quick Sales Orders and Pricing &
Availability forms.
The fields: Margin Amount, Margin% and Unit Cost are hidden. In order to make
them visible, go to Folder menu > Show Field…
Choose them from the list of values.
Important: If the fields that contain margin information are made visible on the Sales
Order form, they are visible also on the Quotes window.
4)
1.In the Sales Orders window, Order Information tab, Other sub-tab: create a folder
in order to display both or either Margin Amount and Order Margin %.
2 In Line Items tab, create a folder to display any or all of the Unit 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.
3 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
.
5)Define an item cost for item.
6)Attach the item to a price list
7)Create a sales order and check the gross margin calculation.
