| # Types of margin control Before you can specify the parameters for (price) margin control or gross margin control, you must select the Margin Control check box in the Sales Order Parameters (tdsls0100s400) session. Next, you can decide which type of margin control you want to use. (Price) margin control For (price) margin control The target price and sales price are compared and evaluated against the margin limits, as specified in the Item - Sales (tdisa0501m000) session. Depending on the Target Price for Margin Control field in the Sales Order Parameters (tdsls0100s400) session, the target price is: The sales price from the Item - Sales (tdisa0501m000) session. The suggested retail price from the Item - Sales (tdisa0501m000) session. The cost price of the item from the Items - Costing (ticpr0107m000) session. The selling price found after searching in Pricing. Note If the item is an effectivity unit, upgrade prices are included in the sales price, the suggested retail price, and the selling price. You can view the upgrade prices for a specific effectivity unit in the Effectivity Unit (tcuef0102m000) session. Gross margin control at detail level To control gross margins at detail level, in the Sales Order Parameters (tdsls0100s400) session: Select the Gross Margin Check Lines check box Specify the Profit Calc Based on Cost/Sales Price field to calculate the gross profit percentage For gross margin control, the target price always is the item's cost price, as specified in the Items - Costing (ticpr0107m000) session, or if an effectivity unit is involved, as specified in the Effectivity Unit (tcuef0102m000) session. The target price and the sales price are used to calculate the gross profit percentage. This percentage is evaluated against the margin limits, as defined in the Item - Sales (tdisa0501m000) session. Gross margin control at header level To control gross margins at header level, in the Sales Order Parameters (tdsls0100s400) session: Select the Gross Margin Check Headers check box Specify the Profit Calc Based on Cost/Sales Price field to calculate the gross profit percentage For gross margin control, the target price always is the item's cost price, as specified in the Items - Costing (ticpr0107m000) session, or if an effectivity unit is involved, as specified in the Effectivity Unit (tcuef0102m000) session. The target price and the sales price are used to calculate the gross profit percentage. This percentage is evaluated against the margin limits for a certain order or quotation, as defined in the Sold-to Business Partner (tccom4110s000) session. Related topics Overview of margin control Using margin control |