Sales > Pricing menu > Sales Markup/Margin Codes window
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Sales Markup/Margin Codes window
Markup/Margin Codes enable you to automatically administer unique and complex pricing policies designed to promote particular markets or products. You can extend special prices on select inventory items to targeted groups of customers and effectively implement strategic pricing plans.
Markup Code / Margin Code
Enter the Discount Code combination from the AR Customers window and the IN Stock window. The first portion of the code (up to six characters) is an entry from the AR Customers window Discount field. The second part of the code (up to six characters) is an entry from the Discount field on the Sales Info tab of the IN Stock window. This Code will appear in the Lookup and on some reports to help you identify this discount and to distinguish it from others.
When a customer purchases a stock item, the entry in their AR Customers window Discount field is combined with the entry in the Discount field on the Sales Info tab of the IN Stock window for the item being purchased. This combination is compared to any Markup/Margin Codes that have been set up in this window. If a match is found, then the discount that is defined by the Markup/Margin Code is automatically applied to that stock item. If no match is found, then the regular price for the item is charged.
NOTE: If you are using both Discount Codes and Markup/Margin Codes, you should set up both types with the same codes.
Description
Enter a description of up to 50 characters. Use a description that easily identifies the customer, stock item, and the type of pricing the customer will receive.
Percent
Enter the percentage to use in the price calculation.
If you select Markup in the Price Setting for Code? section, then the percentage you enter here is the percentage that prices will be marked up from cost.
If you select Margin in the Price Setting for Code? section, then the percentage you enter here is the percentage profit margin that will be built into the calculated price.
Price Setting for Code?
Select either the Markup or Margin option to control how the percentage specified on the previous line is used to calculate the item price.
Markup
If you select Markup, the selling price is calculated using the following formula:
$Price = Cost x (1+Markup)
This formula yields a price that is your specified percentage above cost.
Margin
If you select Margin, the selling price is calculated using the following formula:
$Price = Cost / (1-Margin)
This formula yields a price of which your specified percentage is profit.
Implementing Special Pricing
Pricing Determined by Markup or Margin Codes
Modifying or Deleting Codes