not balance in conditions in sales order

[Former Member]

Hi gurus:

in sales order>header data>condition, there shows profit margin. I think there should exist formula: (all conditions are included for this example sales order )

net value+tax-discount-cost=profit margin

for example:

600+96-20.88<>600 ( data extracted from a sales order, there is no cost)

you see , above formula is not true. please tell me why it is not equal ? thanks very much!

[Former Member]

sorry, above example data shows wrong. it should be :

600(net value)+96(tax)-20.88(discount) != 600 (profit margin)

why this expression does not balance?

[Former Member]

Hi

According to my understanding net value is after all discounts but before tax.

Hence it will go like this

Base Price -- Discounts = Net value before promotions - coupons = Net value after promotions + tax = Total value

Now profit first will not be difference of total and cost but net value after promotions before tax and cost of that material.

Hence Profit = Net value after promotions - cost of material

Check if this way ur calculations are coming correct.

Kind regards

sandeep

[Former Member]

thanks sandeep,

following is the extract for sales order >header data>condition

PR00 net value for item 30000

MWST output tax 4500

SKT0 cash discount 1035-

VPRS cose 16230690

PROFIT MARGIN 16200690-

please tell me how to make it balance? how does profit margin come from? thanks very much

[Former Member]

Hi

From the values you have given the profit margin is not considering the discount. It is just PR00-VPRS.

Discount should be considered while calculating discounts. Check in pricing procedure that the profit step considers the discount step. Or check the alternate calculation type if u using.

Kind regards

sandeep