Defining the Minimum Gross Profit Percent for Price Lines

Set a minimum gross profit percentage (GP%) for a price line to ensure that your profits do not fall below that amount.

You can also set a gross profit percent minimum at the following levels. The levels are listed as the hierarchy dictates, with the highest level at the top:

Order
Product
Price Line
User

When the user makes a change that affects the GP% for an item in sales order entry, the system looks for a specified minimum, in the sequence listed above. The system stops checking once it finds one setting for minimum GP%, and does not check subsequent settings. If the new GP% falls below the first detected minimum, the system displays a warning that identifies the parameter (product, price line, user) affected by the change and what the minimum GP% for that level is. To override the warning, the user must be assigned the SOE.MIN.GP authorization key.

The Base Minimum GP% Price Check Off COMM-COSTcontrol maintenance record determines whether you base the minimum GP% price check off COMM-COST or COGS cost.

To define the Minimum GP% for a price lines:

From the Files > Price Maintenance menu, select Price Line to display the Price Line Maintenance window.
Enter a price line ID to display the price line record.
Select Edit >GP% to display the Price Line Minimum GP% Maintenance dialog box.

The system populates the ID and the price line description from the price line record.

Select File >Toggle Hierarchy, enter a branch, and click OK to view the settings for a specific branch and where those settings came from. All territories that contain that branch display in the Branch /Territory column below the branch, in the order of the territory priority. For more information, see Branch Hierarchy Details.

In the optional OrderStock GP% field, enter a minimum gross profit percent for a stock sale of products in this price line. An asterisk (*) in this field indicates an override for that branch or territory.

The Report Stock GP% field populates with the amount entered in the OrderStock GP% field. If you want the Detailed Invoice GP% report to display a different value, change the amount in the Report Stock GP% field. For example, you might want the report to show GP stock percentages that fall outside the norm for the price line.

In the optional Order Direct GP% field, enter a minimum gross profit percent for a direct sale of products in this price line. An asterisk (*) in this field indicates an override for that branch or territory.

The Report Direct GP% field populates with the amount entered in the OrderDirect GP% field. If you want the Detailed Invoice GP% report to display a different value, change the amount in the Report Direct GP% field. For example, you might want the report to show GP stock percentages that fall outside the norm for the price line.

Save your changes and exit the dialog box.