Material Margin

Material Margin

Setup > Preferences & Costs >Quote Details >Material Margin




Default Setting

Set the default Material Margin for calculating the price for a quote or order item.
Note: Depending on the Profit Model this will be a Margin or Markup value.
When calculating the material price for a quote or order items the following formula is used.
Material Price = Material Cost * weight / (1 - Material Margin %)
or 
Material Price = Material Cost * weight * (1 + Material Markup %)

e.g.
Material Cost = $1.20 / lb
Weight = 165 lb
Margin = 25%

Material Price = 165 * 1.20 / (1 - 0.25) = $264.00

or

Material Cost = $1.20 / lb
Weight = 165 lb
Markup = 25%

Material Price = 165 * 1.20  * (1 + 0.25) = $247.50

Organization Override 

The Material Margin/Markup can be set for a Organization, if the value is blank the the default value will be used.


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