Margin
Margin is the difference between Price and Cost. Margin can be expressed in three ways in Prism: Margin %, Markup, and Coefficient.
Margin Type | Description |
---|---|
Margin % | Margin percentage. The cost as a percentage of the price. |
Markup % | The percentage difference between the cost and the price. |
Coefficient | The Price as a percentage of the cost. |
A change made to price, cost, or margin always causes a change to one of the other values. If you edit cost or price, the Margin %, MarkUp %, and Coefficient will change. If you edit the Margin %, MarkUp %, or Coefficient, the Price or Cost will change.
You can view an item's Margin Percent and Amount by viewing the item's record and navigating to the Price/Cost tab.
Sample item record (Price/Cost tab) showing Margin fields:
Editing Margin
In Prism Node Preferences > Merchandise > Inventory > General, you can choose whether changes to margin affect price or cost. Note: When using sales tax, you typically want changes in margin to affect an item's cost; when using VAT, you typically want changes in margin to affect an item's price.
Margin Type | Description |
---|---|
Margin % | Margin percentage. The cost as a percentage of the price. |
Markup % | The percentage difference between the cost and the price. |
Coefficient | The Price as a percentage of the cost. |
Sample Margin Values
Coefficient | Markup % | Margin % |
---|---|---|
0 | -100 | -100 |
1 | 0 | 0 |
2 | 100 | 50 |
3 | 200 | 66.67 |
4 | 300 | 75 |