How is margin calculated?Follow
Margin is calculated per Product, based on the Average Landed Cost and Unit Sale Price on the Sale Order.
The Average Landed Cost is calculated based on the purchase price + any other costs associated with getting the stock to you (excluding taxes).
Our formula for calculating margin is below:
% (Unit Sale Price - Average Landed Cost) / Unit Sale Price
For never diminishing products, the Cost field (or Last Cost) will be used in lieu of Average Landed Cost:
% (Unit Sale Price - Cost) / Unit Sale Price
For information on how Average Landed Cost is calculated, see How to manage Average Landed Costs.
If you require further assistance, don't hesitate to contact us. Just click on 'NEW CASE' at the top of the page to submit a ticket.