Sales Prices: Minimum Markup Validation in Sales Orders

To make sure that sales prices satisfy your gross profit requirements, you can configure the validation of minimum markup for in sales orders. This functionality is available if the Inventory and Order Management feature is enabled on the Enable/Disable Features (CS100000) form.

The markup percentage can be defined for an item class on the Item Classes (IN201000) form causing the markup percentage to be used as the default value for items of the class), or specified for particular stock and non-stock items on the Price/Cost tab of the Stock Items (IN202500) form and the Non-Stock Items (IN202000) form, respectively.

You can configure minimum markup validation for prices on the General tab of the Sales Orders Preferences (SO101000) form. In the Validate Min. Markup box, you select one of the following options:

• No Validation: No markup validation will be performed for new pending prices.
• Warning: The system will display a warning when a user enters a pending price that is below the price plus the minimum markup.
• Set to Minimum: The system will automatically set the price to the value with the minimum markup when a user enters a pending price that is lower than the price plus the minimum markup. The minimum markup price for a stock item is calculated as Average Cost * (Min Markup% / 100); the minimal markup price for a non-stock item is calculated as Current Cost * (Min Markup% / 100).

Also, you can configure the system to skip markup validation for particular types of prices (customer, customer price class, and promotional) by selecting the appropriate check boxes in the Ignore Min. Markup Validation for Prices Specific To group of check boxes.