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Profit Price Calculation

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Posted on by Kaisha

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I have set up unit cost of an item as USD 10,000 and profit/price calculation as price=cost+profit. On the profit percentage field i have put 30%. The system has shown unit price as USD 14,281 yet i was expecting 13,000. Can someone give an insight on this

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Ben Baxter 4,894 Super User 2024 Season 2 on at

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RE: Profit Price Calculation

(Price - Cost)/(Price) = Margin

In your example (13000 - 10000) / 13000 = 23%

(14,281 - 10,000) / 14,281 = 30%
JAngle 33,159 on at

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RE: Profit Price Calculation

The formula for the validation is like below:

"Price/Profit Calculation"::"Price=Cost+Profit":

if "Profit %" < 100 then begin

GetGLSetup;

"Unit Price" :=

Round(

("Unit Cost" / (1 - "Profit %" / 100)) *

(1 + CalcVAT),

GLSetup."Unit-Amount Rounding Precision");

So flesh that out with your values step by step:

"Unit Cost" = 10,000

1-30 / 100 = 0.7

VAT = 0

Rounding will be whatever. Resulting in this equation:

(10,000 / 0.7) * 1 = 14285.71429