| Types of margin control |  |
| Before you can define 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 registered in the Items - Sales (tdisa0501m000) session. Depending on the parameter Target Price for Margin Control field in the Sales Order Parameters (tdsls0100s400) session, the target price is: The sales price recorded in the Items - Sales (tdisa0501m000) session. The suggested retail price recorded in the Items - Sales (tdisa0501m000) session. The cost price of the item recorded in 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, you must: Select the Gross Margin Check Lines check box. Define the Profit Calculation Based on Cost Price or Sales Price field to calculate the gross profit percentage. For gross margin control, the target price always is the item's cost price, as recorded in the Items - Costing (ticpr0107m000) session, or if an effectivity unit is involved, as recorded 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 Items - Sales (tdisa0501m000) session. Gross margin control at header level To control gross margins at header level, in the Sales Order Parameters (tdsls0100s400) session, you must: Select the Gross Margin Check Headers check box. Define the Profit Calculation Based on Cost Price or Sales Price field to calculate the gross profit percentage. For gross margin control, the target price always is the item's cost price, as recorded in the Items - Costing (ticpr0107m000) session, or if an effectivity unit is involved, as recorded 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 To use margin control |