Checking Sales Line Margins

Check estimated margins on open sales lines before posting.

Bevica gives you the ability to check estimated sales lines margins as documents are created.

See also Checking Inventory Margins.

Prerequisites

Customer and item setup.

Creating sales transactions.

Margin checks on Sales Line Documents

When a sales line is created for Inventory Items, the following fields are available:

Field	Note
Unit Cost (LCY)	For item lines, this is the average cost of stock in inventory for the duty status of the order at the time the line is created. Other line types may populate this field from their master record.
Customer Unit Price	Bevica calculates the price per Unit of Measure the customer will pay for the goods. This value is excluding VAT, and includes Line Discount and any amount of Invoice Discount apportioned to it. It is meant for reporting only. Customer Unit Price = ((Line Amount - Inv. Discount Amount) / Quantity)
Customer Unit Price (LCY)	As above displayed in local currency.
Cash Margin	Bevica calculates the cash margin for the sales line, the value is in currency. Customer Unit Price – Unit Cost.
Cash Margin (LCY)	As above, in local currency.
Margin %	Margin % = ((Customers Unit Price - Unit Cost) / Customers Unit price) expressed as a percentage.

The values are meant as an operational estimate at the time of creating and managing sales documents, prior to the transaction being posted. On posting, the values are copied to their appropriate posted documents.

Notes The field Profit %, visible on sales transaction lines, is the same value copied directly from the Item card, it does not recalculate as prices or discounts are amended on any sales line.

Actual Posted Profit Values

On posting a sales transaction involving stock, Bevica uses FIFO to refine cost of goods sold on item sales lines, creating Value Entries and GL Entries. These values will almost certainly be different from the Margin fields described above.

To view these posted values navigate to the Item Ledger Entry, more information here Checking Inventory Margins.

Notes Default Bevica is setup to calculate FIFO adjustments automatically on posting transactions. If this had been changed, the values above will not reflect the latest costs until the Adjust Cost - Item Entries routine is run.

Sales Margin Filtered View

To help manage sales margins, you can create a filtered Open Sales Lines (see also Open Sales Lines and Open Purchase Lines) list setting your own upper and lower Margin % values, for example: i.e. ‘< 25|>75’.

This filter can be reviewed periodically for any percentages within your filter. You can then save the view and this will serve as a report to check your sales margins.

To read more about filters and views, please check the Sorting, Searching and Filtering document.