Calculation of GP percentage on individual product lines on contracts

Owned by John Nairn
Feb 28, 2017
2 min read

Calculation

If the contract price type is "Specific Retail Ex"

  •    unit cost is the each cost for the product times the product default sell unit's quantity (unit cost = product.each cost from the primary product supplier * product.defaultsellunit.quantity)
  •    gross profit percent is the unit cost divided by the value on the contract price line times 100 (go% = (1 - (unit cost/value on line)) * 100)

If the contract price type is "Specific Retail Inc"

  •    unit cost is the each cost for the product times the product default sell unit's quantity (unit cost = product.each cost from the primary product supplier * product.defaultsellunit.quantity)
  •    unit tax is the value on the contract price line times the tax code tax rate divided by one hundred plus the tax code tax rate (unit tax = contract line value * tax code value / (100 + taxcode.value)
  •    unit price ex tax is the value on the contract price line less the tax value calculated for that line (line value - unit tax)
  •    gross profit percent is the unit cost divided by the value on the contract price line less tax times 100 (go% = (1 - (unit cost/(value on line- unit tax))) * 100)

Determining the product cost

The cost used is the cost from the primary product supplier. This is the same cost as used when creating sale orders and when displaying the current cost on products. This can be changed by a contract on costs that effects the product for all users. But such contracts are very rare. You are normally safe to presume the cost comes from the costprice 1 on the primary product supplier for the product.