Margin

In general, the margin is the difference between the revenue and the costs of a particular item. In Profit, you have several options when it comes to calculating the costs.

The gross profit margin is calculated based on the sales price. Either the fixed transfer price or the cost price is deducted to from the sales price. For articles for which the stock is tracked and for 'Explosion' assembled items, the margin is: sales price minus fixed transfer price.

For other articles (articles for which the stock is not tracked and assembled items) the margin is: sales price minus 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.

We work with the following data:

Profit does not look at the purchase price.

• Margin

  In the sales process, you have the Margin field available both at the line level and in the header/footer. The calculation is:

  Amount excluding VAT -/- Transfer price amount.
  or Sales price -/- Transfer price

• Marge % t.o.v. verrekenwaarde

  The Margin % in relation to settlement value field with the margin percentage compared to the transfer value (only in the entry layout). The calculation is:

  (Amount excluding VAT -/- Transfer price amount)/
  Amount excluding VAT

  or: (sales price -/- transfer price)/ transfer price

• Marge % t.o.v. verkoopwaarde

  The Margin % in relation to sales value field is now available in the entry layout line as well as in the header/footer. The calculation is as follows:

  (Total excluding VAT -/- Cost price amount or transfer price amount)
  Total excluding VAT

  or: (sales price -/- cost price or transfer price)/ sales price

Some entry layouts include the Discount/margin check setting; this works with the Marge % t.o.v. de verrekenwaarde.

See also:

• Check the maximum discount and minimum margin