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Is there a difference between margin vs markup? these two terms are being used interchangeably to mean gross margin, but that misunderstanding may be the menace of the bottom line.

Markup Percentage: illustrates the number of times the Selling Price is doubled from the Actual Cost, (Sell Price – COGS)/COGS

Gross Profit Percentage: illustrates the Gross Profit that we get from the Selling Price, (Sell Price – COGS)/Sell Price

Inside SAP Business One 9.2, we can modify these options via

Administration > System Initialization > Document Settings > General Tab > Calculate % Gross Profit;
Profit / Sales Price, Profit / Base Price

This choice you can change it in any time you want, not just when establishing the company database,

When we’re opening A/R Invoice, opening any existing one, then click on that symbol in the top toolbar

A new window will pop-up “Gross Profit of Outgoing Invoice” This tool shows us the way that we’re calculating the gross profit depending on the Base Price (Last Purchase Price, Last Evaluated Price, Item Cost, …)

Profit / Sales Price (the percentage of Gross Profit to the Sales Price)

Profit / Base Price (the number of times the Sales Price doubled from the Actual Cost)

According to that, we can see the Gross Profit percentage changes according to the Document Settings, since the cost figure should be lower than the revenue figure, the markup percentage must be higher than the margin percentage.

To activate this feature from Administration > System Initialization > Document Settings, and check Gross Profit checkbox

To close this feature for specific users,

From Administration > System Initialization > Authorization > General Authorization > specify the user that you want to adjust his privileges,

Sales > Gross Profit > No Authorization

After adjusting this action, when the user wants to perform this action, he will get this message,

 

hope this one was helpful,

to download the complete documentation;

Markup vs. Margin Gross Profit Calculations in SAP Business One 9.2

for your inquiries and suggestions please feel free to reach me out,

KENAN JADDENY

 

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