Operation Margin

Operation Margin

Setup > Preference & Costs > Quote Detail > Operation Margin



Default Setting

Set the default Operation 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 operation price for a quote or order items the following formula is used.
Operation Price = Labor Rate * Time / (1 - Operation Margin %)
or 
Operation Price = Labor Rate * Time * (1 + Operation Markup %)

e.g.
Labor Rate = $120 / hour
Time = 1:30
Margin = 25%

Material Price = 1.5 * 120.00 / (1 - 0.25) = $240.00

or

Labor Rate = $120 / hour
Weight = 1:30 
Markup = 25%

Material Price =  1.5 * 120  * (1 + 0.25) = $225.00

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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