Sales Margin for an Order in Odoo 16

The sales margin plays a crucial role in the success of a business, represents the overall profit derived from each sale. Numerous factors, such as salaries, manufacturing expenses, and product costs, rely on the sales margin. It serves as a metric to evaluate the profitability of individual products or services and transactional sales. Setting prices higher than the actual cost is vital for the sustainability of entrepreneurship. The Odoo 16 Sales module provides the necessary tools to calculate the margin for a sales order.

By analyzing the margin of an order, we can determine whether it is possible to provide additional discounts or offers to customers.

Sales => Configuration => Settings

To activate the margin feature in Odoo 16 Sales, follow these steps.

First, enable the Margins option located in the Settings. This will allow you to manage profit, sales price, and other relevant factors when selling various products to customers from different locations. Once the Margin feature is activated, you can utilize it to easily calculate the margin for each sale.

Managing the sales margin is a crucial aspect of business growth. To accurately calculate the sales margin, various costs including manufacturing, materials, advertising expenses, and more are added up. It represents the difference between the product price and the total cost incurred on the goods. Any errors in pricing can lead to significant losses for a business, so calculating the sales margin is essential.

Orders => Orders

In the List view, you will find information related to each sales order, such as the order number, website, customer details, order date, and more.

Now create a sale order by clicking on the New button.

Let’s see the product price and cost by opening the respective product.

The sales margin can be adjusted by subtracting the total cost of the product from the product sales price and the number of units sold.

The formula for calculating the sales margin: Sales margin = Sales price * (Total number of units – Total product cost).

Sales margin = 140 – 120.50

Sales margin = 19.50

The margin rate can be viewed from the Sales orders section. To confirm the order, you can select the CONFIRM button within the Sales Order.

To examine the sales orders navigate to the Orders menu and access the Sales Orders, where you can select for the Graph view to assess their performance.

In the graphical depiction, customer details are represented along the X-axis, while the Total Cost of each customer is displayed on the Y-axis. Users have the option to enhance the graph by selecting the MEASURES icon to add additional values.

You can observe various measures, including Untaxed amount, Taxes, Margin, Currency Rate, and others. By clicking on the MEASURES button and choosing the Margin option, you can access the corresponding outcome in the graph.

Users have the opportunity to analyze the margin rates specific to each customer. By configuring product details and accessing the margin after creating a sales order, users can effectively enhance the development of products and services within a business. This capability significantly contributes to the overall improvement of the business.

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