# Calculate margins based on real purchase order prices

By
Sofie Van Looveren
on 5/21/16, 5:27 AM 1,045 views

I am reseller and my profit is the margin compared to my purchase prices.

 Purchase Order Quantity Purchase Unit Price Sales Unit Price Sales Margin PO/0001 100 \$10,000 \$20,000 100% PO/0002 1000 \$ 5,000 \$20,000 300%

The goal is to make as many profit as possible but buyers are negotiating the price.
It is important to know how far I can go in offering the best commercial price but not going below a certain margin against the real purchase price of the product.

A customer is interested in buying 500 pieces when he earns the maximum commercial discount.
How far can I go as a reseller? I want to know when negotiating the sales order.

When I use 100 pieces of PO/0001 and 400 pieces of PO/0002, my sales margin is 260% when using the default sales price of \$ 20,000.
When I use 500 pieces of PO/0002, my sales margin is 300% when using the default sales price of \$ 20,000.

As I bring down the price my sales margin updates. I modify the sales unit price from \$ 20,000 to \$ 10,000.

When I use 100 pieces of PO/0001 and 400 pieces of PO/0002, only 80% of my sales margin is left.
When I use 500 pieces of PO/0002, my sales margin becomes 100%.

Is it possible to display a weighted margin within a sales order based on the real purchase prices?

Yoshi Tashiro
On 5/21/16, 11:35 AM

It is not possible without customization as far as I understand.  If you are on v8 or v9, given that quants represent purchase prices, a way to customize can be:

1. Add field quant_ids (One2Many) in sales order line to let user select quants (with quantities) for each line

2. Calculate weighted cost based on selected quants to show margin

3. Use selected quants for reservation in corresponding outgoing stock moves upon confirming the order

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 Asked: 5/21/16, 5:27 AM Seen: 1045 times Last updated: 5/21/16, 11:35 AM