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Working our the profit margin when VAT is included

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Posted on by Community Member

I'm trying to work out how the profit margin works in RMS ver 2 on the Item properties - General tab.

When I have an item with no VAT the profit margin is correct but when I add the item tax (VAT) I can't come of with how it being worked out.

Does anyone know where I can get this information / documentation?

Thanks

Adrian

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RE: Working our the profit margin when VAT is included

Thanks for your reply. I will look at this.

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Devanand Soodeen 426 on at

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RE: Working our the profit margin when VAT is included

the profit margin tab is just a margin between the two items average,this is not to be use for mark up..... the cost tab should be the cost-vat..then in the price field you use this formula...cost with out vat + mark up+vat

therfore eg. 100+25% mark up+ 15% vat= $143.25

if theres no vat ...use the cost field as the cost -the vat...then in the price tab use the cost price withouth the vat then add your mark up cost to it..thats all

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