This function is used to define minimum profit margins for a group of Titles (Title hierarchy) and group of customers (customer hierarchy). Multiple minimum margins are allowed for each Title level, with the help of a start (effective) and end (expiry) date.
Modules such as Price Simulation, Sales Budget and Sales Forecasts use this information, and based on its effective/expiry date override the minimum margins defined on the Price Simulation module. If the calculated gross profit margin is below the minimum margin, a warning is displayed on the Order Processing screen.
Minimum Margin is also a parameter that can be defined as a Pending Reason. The Pending system can be set up so that an order pends if the margin is less than that defined for the Title. This margin is calculated as the net invoice price not including rebates. This can be set up to allow different staff members to authorise the release of percentage differences. A negative minimum margin value can be setup which affects the pending program by not pending customers where the margin on an invoice is negative (that is the price is less than the cost).
Add new minimum margin to an item
- In the menu, expand Base Modules > Distribution > Masterfiles >Database Management > Database Management > Item Masterfiles > Item masterfiles and double-click IM Minimum Margin Maintenance. DSM165 Minimum Margin Maintenance selection panel appears.
- Click OK. DSM165 Minimum Margin Maintenance main panel appears.
- Click Add. DSM165 Minimum Margin Maintenance panel appears in Add mode.
| Field | Description |
| Customer level | Customer key levels are predefined system codes, summarizing customer data into different levels, that is, the codes can refer to customers only, groups of companies the customers belong to, or to sales representatives dealing with certain customers. |
| Customer class type | The entry of a Customer Class Type in Minimum Margin Maintenance depends on the selection made in the Customer Key Level field. For example, Customer Key Levels of CA, CZ, C1, C2, C3, C6, C8 and C9 do not require an entry in this field. Customer Key Levels that requires entry here are: C5 and C7. If for example C5 is selected, prompt for valid Customer Classification Type codes in TMSDS/CC-TYPES. Examples of both user and system defined choices are:
CC-ACTYP = ACOUNT TYPE CC-BG = BUYING GROUP CC-DTOS = TYPE OF SALES CC-PKG = PROMOTION PACKAGE |
| Customer key | Depending on the selection made in Customer Key Level, an entry may be required in this field. Customer Key Levels that require entry here are: CY, Z, C1, C6, C8. These could refer to groups of companies the customers belong to, sales representatives dealing with certain customers, etc. |
| Item level | Title levels group or summarise product details into different levels for analysis purposes and to create definitions that relate to various groups of titles. It is a hierarchical structure.
The title levels or title key levels are system defined, however, each level can hold an unlimited number of user defined codes to identify the various groupings within the level. |
| Item class type | Titles can be categorised into several Classification types. This field is optional depending on the selection made in the Title level field. If for example the Title Key level is I7, then search for a list of valid Classification types in TMSDS/IC-TYPES. |
| Item key | The entry in this field depends on the selections made in Title level code or Title Key level and Classification type. |
| Type of sale |
Type of sale Defaults from the previous selection and may be blank if the Price code does not include a Type of sale code. The Type of sale (TOS) code identifies a transaction as being a certain type of sale, such as a Special Sale, Complimentary, Service, etc. |
| Effective date | This indicates the date from which a Minimum margin becomes applicable. |
| Expiry date | This indicates the date from which the Minimum margin is no longer applicable |
| Minimum margin | If the calculated gross profit margin is below the minimum margin percentage specified in this field, a warning is displayed on the Order Processing screen. |
- Enter the required information.
- Click OK to confirm.
