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Gross Profit %
The GP% is based on an equation that takes your retail price and subtracts the item's cost from it and divides that total by the retail price multiplied by 100. Take the item shown below for example. The retail price is $5 and the last cost is $1. Using the equation from before, the system figures it out to have a GP% of 80%, meaning you get 80% for every item sold.
The first field we will discuss is Cat. Cost GP%. This field is based on your catalog (Cat.) cost. If there is no catalog entry for this item, the Cat. Cost GP% will be 100%. This field can not be edited.
Next, we will discuss Replace GP%. This is the profit you are gaining based on how much it costs to replace a unit in your inventory. This value is based on your Cat. Cost. If there is no catalog cost for this item, the system will use the Last Cost to calculate the percentage. Editing this field will change your retail price based on the Cat./Last Cost. The Cat. Cost and Last Cost will not be changed.
The Retail GP% is based on the Avg Cost. As items are purchased from a vendor and received, the average cost may change. Changing this percentage will alter the retail price according to the current Avg Cost. The Avg Cost will not change.
The Desired GP% field can be changed at any time to drive the system to adjust the retail price to achieve your desired profit margin. It calculates retail price using the first non-zero cost found, from catalog cost to last cost to average cost. This percentage can be set on a per class level, meaning any time a new item is entered into inventory, the system will look at the class listed on the new item and input the Desired GP%. Look at Class under IC | Support Files for more information.
If you are utilizing the Rounding Table (click here for more information), changing any GP% that affects the retail price will automatically apply any rounding established. Note that if you change a GP% to 80.00 and a rounding table is in place, the resulting % may not be exactly what you entered (due to the rounding set in place).
