KIT cost and margin for reporting

Description

This article explains KIT cost and profit margin calculation on reports.

Detail Steps

WMS calculate costs and profit for components only as KIT header Item is used as command line and only for display purposes on Sales order/Forms screen.

To calculate costs and profit %, you need to add Sell Price for all components as WMS will calculate profit from components Sell and Buy price.

Bundle A Sell price $100
Component A Sell price $20 Average cost $5.5
Component B Sell price $50 Average cost $10.5
Component C Sell price $30 Average cost $5.8

Profit calculation = Sell Price $ 100 minus average cost $21.8 = Profit $78.20

Once you setup all pricing (important Sell price even if you don’t sell as a single item) for KIT components, you should be able to see Profit under Sales reports.
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WMS will calculate the Average cost the same as Accounting software, and this cannot be changed.

The only workaround would be for Datapel to customize Report to calculate STD cost instead of Average cost. This way, report comparison would be inaccurate in WMS and Accounting software as some use Average cost only.

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