Set Gross Profit Rate for Service Docs

Lots of planning, research and thinking are invested when pricing goods. One of the factors taken into consideration is making sure the desired gross profit rate of the goods sold is achieved. But what about services? Many businesses are selling services such as consulting, coaching, etc. either as the core business activity or in addition to selling goods. For example, health food store that offers nutritional consulting. To ensure the gross profit gained of the business activity recorded in service type document, SAP Business One enables you to define default gross profit rate for documents of service type:

The calculation of the gross profit in service type document is performed accordingly and reflected in reports. For example:

Note that if you don’t define a default gross profit rate, the gross profit rate for your service type documents will be calculated as zero.

Available in SAP Business One, version for SAP HANA and SAP Business One. This tip and all the other tips are available on the Tip of the week community page. You can also visit the Implementation Arena for useful implementation tips.