Gross Profit Calculations

Montreal

Member
re: Sales Order Processing
Can someone shed some light into how to calculate gross profit % on a sale?
Both in World and OneWorld, the P42045 shows the Profit Percent calculated as,
(Sales Amount - Ext. Cost)/ Sales Amount *100
I called JDE Support on this and they said it's working as designed.
I think they got the wrong formula.
Just wondering if I am missing something here?
 
Carlo,

GP calculation is correct. For every item where an
item cost (F4105 or F41051) and price (F4106) record
are found, this will calculate the gross profit. If
you're looking for a different margin, add an amount
to the cost table to modify that cost.

Also, when adding costs to F4105, you can select the
cost item you want to use for inventory execpt if you
are using manufacturing which requires 07 because of
the cost rollup functionality.
--- Montreal <[email protected]>
wrote:
http://www.jdelist.com/cgi-bin/wwwthreads/showflat.pl?Cat=&Board=Apps&Number=29438


__________________________________________________


World, OW B733X and Xe
 
That's the industry standard formula for gross profit.
Sale price = $120
Cost = $100

GP% = (120-100)/120 * 100 = 16.7% Gross Profit
 
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