Profit Margin

[Former Member]

Hi Gurus,

My client wants a profit margin of certain amount when ever he raises a sales order. It should reflect in condition tab when ever sales order created.

For eg: Cost of the product---- 100

Profit Margin -

---

20

-

---

Net value 120

Profit margin should be in percentage (20%)

Plz Help

Vinod

[Former Member · Accepted solution]

If the price is maintained as standard price in material master, following is one suggestion:

To derive basic price with 20% margin, maintain the steps as under:

Step no | Condition Type / desc | from | to | .....................

10 | VPRS | blank | Blank | ........................

20 | ZPRT (Surcharge condition for profit margin) | 10 | 10 | ..................

50 | PR00 (Base price) | 10 | 20 | .........................

followed by other condition & methology for calculation required.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

need some more clarification

[Former Member]

for VPRS, price will be picked from material master

for ZPRT, you will have to maintain condition record as per desired % (benefit of maintaining as condition record will be that in future if % changes, then the condition record can be updated.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Can you clarify - are you trying to do what's known as 'cost plus' pricing? Then what you need to do is just apply a surcharge.

To MOHAN: The user seeing the margin in VA01 doesn't necessarily mean it appears on the correspondence sent to the customer...

[Former Member]

Hi,

I want Cost+Profit(in percentage)= Price of the product.

When ever a sale order is raised.

Thanks.

[Former Member]

Hello !

This brings up an interesting question, You want cost of the product(say 100) and profit margin say (20%) then net value(120),

then, are your using condition type PR00?, If yes, Profit margin will be (PR00+surcharge/discount)-(Cost), this is how normally it is done.

You want it the other way round (cost+profit margin)? then no need of PR00 or other surcharge/discounts?

Does this provoke some thoughts?

Regards,

PATHIK

[Former Member]

hi

u will create the new routine for profit margin from VOFM . assign to the particular condition type.

[Former Member]

Hi,

Generally no company wants to display the profit margin in the sales order.

Ok.Anyway.Requirement is requirement.

Try with the condition types surcharges.

Mohan

Award points if it helps.