In Unleashed, a Sales Order's (SO) margin is calculated per order and charge line, based on the product's current cost and it's sale price per Sales Order. If a Sales Order's showing an unexpected margin, you will want to review the product's current Average Landed Cost, Last Cost or Nominal Cost to ensure the correct values are being used for the following calculations, 

Margin calculations for inventory managed products

For products in Unleashed that have Stock on Hand, their margins are calculated using the product's Average Landed Cost (ALC) a the time the order was dispatched, or the current ALC if the shipment's not yet been completed. In these cases, the following formula:

% (Unit Sale Price - ALC) / Unit Sale Price

For information on how Average Landed Cost is calculated, see How to manage Average Landed Costs.

NOTE: If a product currently has no Stock on Hand, it's Last Cost will be used to calculate an advisory margin for the Sales Order whilst you wait for more stock to be receipted or assembled. 

Margin calculations for Never Diminishing Products

For products in Unleashed that do not track inventory, i.e. Never Diminishing Products (NDPs), margins are calculated using the product's Last Cost (or Nominal Cost), instead of an Average Landed Cost. This means you're able to account for any costs incurred for additional services provided to your Customers per Sales Order. In these cases, the following formula is used:

% (Unit Sale Price - Last Cost) / Unit Sale Price

For details on how to managing costs for NDPs, see How to add a cost to a Never Diminishing Product.