Manage Margin %
Permissions Required
Margin Percentage
Getting There
- Select More from the Arclight main menu
- Select Your Company Info from the More menu
- Select Margin Percentage from the Your Company Info menu
Usage
Arclight uses the margin percentage settings when you add parts from your distributor to a quote, job, invoice, or bundle. Arclight calculates the price of the parts based on the cost from the distributor and your margin percentage settings. Price is calculated as follows:
Price = Cost / (1-Margin %)
Example:
Cost of the part: $125.00
Margin %: 10%
Price = 125.00 / (1 - 0.10)
Price = 125 / 0.90
Price = 138.89
Price = Cost / (1-Margin %)
Example:
Cost of the part: $125.00
Margin %: 10%
Price = 125.00 / (1 - 0.10)
Price = 125 / 0.90
Price = 138.89
Margin = 138.89 - 125.00 = $13.89
Margin is not the same as markup
As noted above, Arclight does not simply mark up the cost from the distributor by the margin %. Therefore, margin % cannot be used to calculate taxes to be collected. If you need to collect taxes from your customers you should use Arclight's tax settings. See "Manage Tax Rates" for more details.
Margin Ranges
Arclight allows you to configure your margin % in ranges based on the cost of the item.
