Minimum Gross Profit MarginThe Minimum Gross Profit Margin option omits sales discounts which result in a Gross Profit Margin below the established Minimum “Gross Profit Margin”.
A typical example of this would be a customer’s departmental discount within the Tool department. The customer receives a blanket 20% discount off all “Tool” department items which includes a hand tool which has a low margin.
Note: The Minimum Gross Profit Margin is applied to each item being entered into the item detail screens of Point of Sale Invoice, a Quote or a Sales Order. If the user has the system rights to edit the price of an item, an item’s price may be manually changed thus disregarding the Minimum Gross Profit Margin rate.
In the example below, if the Minimum Gross Profit Margin set to 10% and the customer typically receives a 20% retail discount (wow!), the system would throw out the resulting 4% GP price and replace it with the $25.50 price instead.
This feature is set within System > Company Setup > Inventory Page 3 > Minimum Margin. Enter the desired Minimum Margin percentage. Select Save and then Exit and return to TransActPOS at the workstations to invoke the new feature.
Excluded from this calculation are:
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Customers assigned Retail to be Cost (Catalog Cost, Last Cost or Average Cost)
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Sales Order Pricer Prices
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Prices established within Quotes and Sales Orders
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Contract Prices
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Quantity Break Prices
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Sale Prices
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Reward Customer Sale Prices
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“ABC” prices
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“ABC” quantity prices
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