How margins are calculated

Current Margin vs New Margin

If you notice a difference between the margins in your ERP system and the margins in Omnia, don’t worry! This can be because the information that we use to calculate margins differs from one another. 


In Omnia, you often see margins in several sections, such as on the product detailed page and the price recommendation tab as can be seen in the screenshot below:


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The formula that Omnia uses for “Current Margin”


     ((Selling Price/(1+VAT/100)) - Purchase Price)

=     __________________________________

                ((Selling Price)/(1+VAT/100))



Similar to the formula of “Current Margin”, the formula Omnia uses to calculate “New Margin”



       ((Price Recommendation/(1+VAT/100)) - Purchase Price)

 =  ______________________________________________

                    ((Price Recommendation)/(1+VAT/100))


If you are wondering where this information is coming from, you can check it in the import mapping section of Omnia as can be seen below:

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The VAT in Omnia should be in integer not in comma form. Eg: VAT 21%, VAT in the mapping should be 21 and not 0.21


Price Recommendation will, however, be the price recommendation that Omnia calculates based on your current strategy.