Gross profit percentage (GP%) is your retail price minus cost, or profit, represented as a percentage. It is calculated using the following equation:
As an example, the item shown below has a retail price of $5 and a last cost is $1. Using the equation above, the GP% is calculated at 80%, meaning you get 80% of the retail price for each item sold.
A few GP% values are calculated based on different costs.
 Catalog Cost GP%This field is based on the item's catalog cost. If there is no catalog entry for this item, this value is 100%. This field can not be edited.
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 Replacement GP%This is the profit percentage based on how much it costs to replace a unit in your inventory. This value is calculated using catalog cost. If there is no catalog cost for this item, the system uses Last Cost to calculate the percentage. Manually editing this field back-calculates your retail price using the catalog cost or last cost; neither the catalog cost nor the last cost are changed.
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 Retail GP%The Retail GP% is based on the item's average cost. Over time, as items are purchased from a vendor and received, the average cost may change. Manually editing this percentage back-calculates the retail price according to the current average cost; the average cost is not changed.
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 Desired GP%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 at the class level so that any new items entered into inventory are assigned the Desired GP% set for their respective classes. This is maintained in IC | Support Files | Class Maintenance.
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| | If you utilize the Rounding Table, changing any GP% that affects the retail price automatically applies any rounding established. Note that changing the GP% with a rounding table in place may not result in exactly the GP% that was entered. |
