A sales margin is the profit gained from the sale of a product or service after all the costs related to it have been accounted for.
Configuration
To activate the Margins feature, go to the Sales app ‣ Configuration ‣ Settings. In the Pricing section, enable the Margins checkbox. Then click Save.
Configure price and cost
Each individual product must be configured to automatically calculate the sales margin on each quotation and SO line. To enable this feature, navigate to Sales app ‣ Products ‣ Products. Click New and on the product form fill out the Sales Price and Cost fields in the General Information tab.
SecureIO calculates the margin with the following formula:
The margin percentage is calculated with the following formula:
Compute margins on sales orders
To calculate the margins on a SO, navigate to Sales app ‣ Orders ‣ Quotations and create a new quotation. While adding products to the quotation, a new field, Margin, automatically appears at the bottom of the to the quotation. This field displays the order’s total margin in the configured currency as well as the percentage.
Compute margins on sales order lines
To display a product’s margin and the margin percentage per line item, click the (settings adjust) icon in the Order Lines tab. Then, select the checkboxes for Margin and Margin (%). The Margin and Margin (%) columns are not displayed by default, but once enabled, the columns appear on all new and existing quotations and SOs.
The Margin column shows the profit earned from the sale after accounting for all associated costs, in the configured currency value. The Margin (%) shows the margin value as a percentage. The margin for one unit is multiplied by the quantity to determine the margin for the entire line.
Editing the Margin column automatically recalculates the Unit Price of the product on the SO. Both columns can be edited on the SO until an invoice is created.
Note
The Margin and Margin (%) columns are not editable since they are automatic calculations. To change the calculation, refer to Configure price and cost section for more information.
Margin calculation with a pricelist
To calculate the margin with an applied pricelist, begin with configuring a pricelist for the product. Follow these steps:
Go to Sales app ‣ Products ‣ Pricelists and click the New button.
Enter the name of the pricelist and click Add a line to create a new pricelist rule.
Configure the pricelist and click Save & Close button.
Go to Sales app ‣ Orders ‣ Quotations and create a quotation.
In the Pricelist field, select the newly made pricelist.
Click on Update Prices to refresh the product price and margin.
Use case: Conditional discounts
A clothing store wants to create a seasonal 5% discount on blue denim jeans. The discount requires a minimum of two pairs of jeans in an order and is valid only from October to the end of December.
First go to Sales app ‣ Products ‣ Pricelists and create a new pricelist for the seasonal discount. Click Add a line to configure a price rule for seasonal discount. Include the specific product it applies to, the type of discount, the minimum quantity needed to trigger the discount, and the date range the discount is active.
After saving the pricelist, go to a SO containing blue denim jeans and select the newly created pricelist in the Pricelist field.
Important
The discount only applies if the SO meets both the date range and minimum quantity requirements.
After the changes are made, click Update Prices to update the Margin, Margin (%), and Amount. The margin is recalculated based on the pricelist-adjusted product’s sales price and cost.
Tip
Another way to visualize the impact of margins on SOs (sales orders) is to view the quotations data as a graph or chart. Go to :menuselection:`Sales app –> Orders –> Quotations, then click either the (Graph) icon or the (Pivot) icon. Next, click the Measures drop-down button and deselect Total and select Margin. This presents all margin contributions across the customer base.