Thinking about Sales Margin Analysis - From Quotes to Invoices

Yahoo Archive
1

In your old system were you using your costing method to calculate SGM?

 

For configured parts – if they are shipping from a job – the SGM is calculated and stored on the Invoice Detail.

 

It will bypass updating the last and average cost.

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Wednesday, November 18, 2015 9:20 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Thinking about Sales Margin Analysis - From Quotes to Invoices

 

 

Just musing here, and I hope some of you have solved my problem already. :-)

Since our go-live in January, we’ve been in emergency mode. But we’re starting to see the light and some informational solution needs.

On our old system we had the ability to get a gross margin at the time of quote, order, and invoice. We don’t have that any more, and I’m searching for how to go about getting it.

If we sold all our parts as discrete items with part numbers it would be easy to do a BPM or query to add up all the item costs. But the bulk of sales in dollar terms comes from configured parts.

In the quote, I could change the configurator to return component costs as well as pricing, and then add this cost to any parts added on additional lines. I suppose I could do the same for orders and invoices and be fairly accurate, but we could have made manual changes to the job and it wouldn’t necessarily reflect what we actually did.

We have a dashboard that gets order history for each line and gives a gross margin based on inventory cost, but configured parts come out with a zero cost. Even if the part number did have a cost it wouldn’t be valid. The same non-stock configured part number could have a cost from $2,000 to $50,000. If we made them to stock so it would cost them properly, any margin analysis for a particular order would be wacked (an advanced technical term).

I haven’t found costing information in quote, order, and invoice tables yet. Is there an easier way to get this info? From the invoicing side, maybe get it from the WIP reconciliation postings, etc?

Thanks,

Joe

--

Joe D. Trent

Bigham Ag Equipment

 

2

Just musing here, and I hope some of you have solved my problem already. :-)

Since our go-live in January, we’ve been in emergency mode. But we’re starting to see the light and some informational solution needs.

On our old system we had the ability to get a gross margin at the time of quote, order, and invoice. We don’t have that any more, and I’m searching for how to go about getting it.

If we sold all our parts as discrete items with part numbers it would be easy to do a BPM or query to add up all the item costs. But the bulk of sales in dollar terms comes from configured parts.

In the quote, I could change the configurator to return component costs as well as pricing, and then add this cost to any parts added on additional lines. I suppose I could do the same for orders and invoices and be fairly accurate, but we could have made manual changes to the job and it wouldn’t necessarily reflect what we actually did.

We have a dashboard that gets order history for each line and gives a gross margin based on inventory cost, but configured parts come out with a zero cost. Even if the part number did have a cost it wouldn’t be valid. The same non-stock configured part number could have a cost from $2,000 to $50,000. If we made them to stock so it would cost them properly, any margin analysis for a particular order would be wacked (an advanced technical term).

I haven’t found costing information in quote, order, and invoice tables yet. Is there an easier way to get this info? From the invoicing side, maybe get it from the WIP reconciliation postings, etc?

Thanks,

Joe

--

Joe D. Trent

Bigham Ag Equipment