Proposal for Margin Verification

JIRA TASK :

ALGR-81] Margin Verification – JIRA – Jobin & Jismi IT Services LLP (atlassian.net)
[ALGR-121] Margin Verification – JIRA – Jobin & Jismi IT Services LLP (atlassian.net)

PROPOSAL SUMMARY 

This proposal covers how to add the total cost, margin and margin percentage in the purchase order billing. 

REQUIREMENT 

We need to add total cost, margin and margin percentage in purchase order billing, which will allow finance team to monitor margin given by vendors. 

OUR SOLUTION 

• To accomplish this customization, we’ll add three custom fields to the newly created subtab “Margin” in the Bill record. The custom field name will be the Total Cost, Margin, and Margin Percentage. 
• In addition, for the bill record, a user event script will be deployed. 
• The script will run for each bill record in both create and edit context. Based on the following calculation, the script will determine the total cost, margin, and margin percentage. 
   
  For the Total Cost  
  Total Cost = Landed Cost + Rate 
   
  For the margin calculation 
  Margin = Sales Price – Total Cost 
   
  For margin percentage calculation 
  Margin Percentage = (Margin / Sales Price ) * 100
   

•  We will create a custom summary box and display the values inside of the box. It will be displayed in the format shown below. 

Sample Format: 

ASSUMPTIONS 

• Algarawi team will add the landed cost for the bill, and we will be adding the purchase order rate to it to calculate the total cost. 
• During the total cost calculation, we consider the rate excluding the tax. 
• We will only consider inventory and non-inventory items. 
• The UOM value in the item line will be used to convert the purchase rate of the item. 

• For example, if an item has a UOM value is “pack” in the item line. We will convert the corresponding purchase rate based on the base unit. The piece is the base unit in the Algarawi account.  
  Calculation: Item line purchase price / UOM rate 
  

• 
  In the above sample, Units is” BOX 30” and the RATE is 734.40. 
  We will calculate the purchase price as 734.40 / 30 = 24.48. 
• The following will be the unit types in Algarawi account. 
  

Note 

1. The Landed cost will be the sum of custom duty, logistics, saber and other fee in the bill record. 

2. The Rate will be the sum of purchase rate of all the items in the corresponding bill record. 

3. The sales price will be the item record’s base price. (We will not consider the quantity level pricing, always consider the sales price as Qty0 value for the item.  We will take the sales price based on the transaction currency.  

4. If there is no corresponding item base price for the transaction currency, we will not consider this item for price calculation. 

5. Inside the summary box the currency will be based on the transaction currency. 

RISKS 

• We are not considering the quantity level pricing for the calculation. 
• Kit items, Group items, Service items, Discount items and other charge items are not considered for the price calculation. 
• We cannot change the position of summary box.