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Can i use margin rate instead of markup rate in pricelists ?

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Alti

Hello,

I'm trying to setup the price lists in OpenERP v7.0 but with the current basic configuration, i only have the option to set the markup rate in the current calculation.

I would like to set the margin rate instead to create my selling price.

For reminder :

  • Margin : The percentage margin is the percentage of the final selling price that is profit.

  • Markup : A markup is what percentage of the cost price do you add on to get the selling price.

For example i buy a product a 100 and i sell it 200, the margin rate would be 50% and the markup rate 100%.

In the current implementation (base price * ( 1 + my_rate ) + other_value) i can set the markup price but i don't see how to set the margin price which should be something along those line : base price / ( 1 - my_rate ) + other_value.

Regards,

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Sean Craig
Best Answer

In Odoo 17, there are pricelist rules, but they still calculate by markup, not margin. Margin (not markup) is displayed correctly on invoices by Odoo. So, they got it right in that view. Pricelist rules are where the issue persists. As you mentioned, margin is what businesses should use. Not markup.

A workaround is to calculate the appropriate markup to achieve your target margin.
Examples:
30% margin = (30 ÷ 70) X 100 = 43% markup
40% margin = (40 ÷ 60) X 100 = 67% markup
50% margin = (50 ÷ 50) X 100 = 100% markup
60% margin = (60 ÷ 40) X 100 = 150% markup

The next thing that is unusual in pricelists is there is a discount field, but no markup field. Use -43% in the discount field to set sales prices at 30% margin over cost.

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