Inventory Price Level Calc Update
Overview
The Inventory Price Level Calc Update is the utility that updates pricing fields with the price level margins defined in Inventory Price Level Calc Setup.
SETUP PROCESS
The Inventory Price Level Calc Update is found by clicking:
File | Inventory Maintenance | Inventory Price Level Calc Update
Inventory Criteria: Any information displayed in the Inventory Criteria will filter the parts within the inventory. Click Change to select which lines or parts are adjusted. See Record Selection Criteria for instructions on how to enter information.
View Update Records: Click View Update Records to view the records that will be updated (and the margins that will be calculated) before clicking Do Update. This may take a few minutes, but users can confirm exactly which parts will be adjusted and what the adjustments will be. This step is HIGHLY RECOMMENDED.
Do Update: Click Do Update to update parts. It is suggested that this is done before or after hours, when users are not accessing parts. If done during business hours, please note that the process may take longer if parts to be updated are locked due to other processes taking place. Once an update is started it cannot be stopped.
Cancel: Click Cancel to leave the screen without doing the update.
The Difference Between
“MARKUP” & “GROSS PROFIT”
Did you know that a markup of 35% only gives you a gross profit of 26%?
How many times a day do you or your counterpersons mark something up from cost X% thinking that’s what you will make?
The problem is that simple markups are easy to do in your head, but gross margin calculations are more difficult.
A. SIMPLE MARKUP SELLING PRICE=
OF X% COST PRICE + (X% x COST PRICE)
B. MARKUP TO GET A SELLING PRICE=
SPECIFIC GROSS COST PRICE / (1 - X%)
MARGIN (X%)
The table on the next page shows what percentage you must markup to achieve the gross margin you want. If you use this table, you can do the easy calculations (A. above) and make the right grosses!
PROFIT MARGIN TABLE
TO GROSS MARKUP TO GROSS MARKUP
20.00% 25.00% 50.00% 100.00%
21.00% 26.58% 51.00% 104.08%
22.00% 28.21% 52.00% 108.33%
23.00% 29.87% 53.00% 112.77%
24.00% 31.58% 54.00% 117.39%
25.00% 33.33% 55.00% 122.22%
26.00% 35.14% 56.00% 127.27%
27.00% 36.99% 57.00% 132.56%
28.00% 38.89% 58.00% 138.10%
29.00% 40.85% 59.00% 143.90%
30.00% 42.86% 60.00% 150.00 %
31.00% 44.93% 61.00% 156.41%
32.00% 47.06% 62.00% 163.16%
33.00% 49.25% 63.00% 170.27%
34.00% 51.52% 64.00% 177.78%
35.00% 53.85% 65.00% 185.71%
36.00% 56.25% 66.00% 194.12%
37.00% 58.73% 67.00% 203.03%
38.00% 61.29% 68.00% 212.50%
39.00% 63.93% 69.00% 222.58%
40.00% 66.67% 70.00% 233.33%
41.00% 69.49% 71.00% 244.83%
42.00% 72.41% 72.00% 257.14%
43.00% 75.44% 73.00% 270.37%
44.00% 73.57% 74.00% 284.62%
45.00% 81.82% 75.00% 300.00%
46.00% 85.19%
47.00% 88.68%
48.00% 92.31%
49.00% 96.08%
See also