Check the maximum discount and minimum margin

In the entry layout, you can set whether to block orders if the discount amount is above or the sales margin is below a certain amount. You can configure this for the order and the quotation. You apply a maximum discount or a minimum margin to ensure that not too much discount is given. Profit blocks order lines where the total discount percentage is higher than the set maximum or where the margin is lower than the set minimum.

You record the percentages per article group and in the entry layout you specify that they must be checked. You can configure this for the order and the quotation.

The gross profit margin is calculated on the basis of the sales price. The fixed transfer price or the cost price is deducted from the sales price. For articles for which the stock is tracked and assembled items of the Explosion type, the margin is: sales price -/- fixed transfer price. For other articles (for which the stock is not tracked and assembled items) the margin is: sales price -/- cost price. That is because in Profit, there is no valuation of the stock based on the purchase price because the historical purchase price is not known.

Note:

You can set up the blocking of orders at the order and quotation level. In this description, you can substitute quotation for order.

Procedure

• Set up the maximum discount and minimum margin in an article group

  Per article group, you specify the percentage for the maximum discount and the minimum margin you want to realise for the article group. You use the setting in the entry layout to check if these percentages are realised when the quotation and/or order is added.

• Set up the maximum discount and minimum margin in the entry layout

  In the entry layout for the quotations and orders, you can specify that you want to check that the maximum discount and the minimum margin criteria are met.

• Maximum discount and minimum margin check when entering a sales order

  Profit calculates the margin on an item using the formula: Sales price -/- Fixed settlement price (for articles for which the stock is tracked and assembled items of the Explosion type). For other items the calculation is: Sales price -/- Cost price.