Odoo Sales Management
The sale profit is a determining factor in a company's growth. To make a profit from the company, we need to keep a tight grip on the sales margin.
What exactly is profit?
Profit is the money left over when subtracting the price of a good from its actual expense.
The net cost of a commodity in the automotive industry covers the price of raw materials, labor costs, machine charges, and taxation on the final product. When a seller sells a product to a buyer, he must have a revenue component in the overall price. Odoo Sales Odoo sales management.
Where it comes to a store or point-of-sale company, the expense includes the price of the goods as well as overhead costs for shipping, distribution fees if applicable and employee salaries.
The money paid to the employee would be split among the costs of all goods sold in the store.
To run a company without losing money, we must ensure that the product is delivered at a cheaper price than the actual cost of the product.
What's Profit Margin?
The average amount of profit that we will make from each transaction is known as the sales margin.
To ensure profit in a service or product market, the sale margin must be well managed.
Since rounding up all of the expenses, such as material costs, manufacturing charges, the sums spent on ads, and staff wages, we arrive at the sales margin.
In a nutshell, the difference between the actual amount paid buying a commodity and the price at which it is sold is known as the sales margin.
We will check a few tips to correct the best selling margin before digging into how to use Odoo for proper sale margin measurement.
- Calculate your profit margin based on your costs.
- Using a formula, calculate the profit margin.
- The more accurately you measure sales margin, the more you'll be able to handle your budget.
- When determining sales margin, including both direct and indirect expenditures, including manufacturing costs to shipping charges.
- Examine the profit margins of various products
- Compare the product's profit margins to those of competitors' brands.
Why is it essential to use Odoo ERP to manage sales margins?
A store or processing plant will market a variety of goods to a variety of consumers in various locations.
Transportation and processing costs would rise in proportion to the customer's distance and the form of the product. As a result, it's possible that we won't be able to set a single profit margin on all of the brands.
Instead, we need a scientific method for calculating the overall cost and then determining the purchase price. The Odoo ERP will assist the investor in managing all expenses,
including benefits and sale prices. All info, including labor costs,
other charges, taxes, and raw material cost updates, will be available in Odoo ERP. All records, including labor costs, other charges, taxation, and raw material costs, will be updated in a well-equipped ERP. The sums can also be calculated by the Odoo ERP formula. If we use an Odoo ERP for this, we can automatically get the price per product, the price for multiple unit purchases, and the sales margin whenever a selling order or an invoice is made.
Every year, Odoo ERP will improve your application to meet evolving requirements. Odoo 14 has a feature that automatically calculates the percentage of gross margin. This can be achieved easily by picking the commodity to be sold. Let's look at how you can use Odoo 14 to handle the sales margins. We're looking at ways to handle percentage-based sales margins. Load the Odoo Sales module from Odoo Apps to get started.
Let's take a look at the Sales Dashboard first. Next, we'll look at how to set margins on selling orders.
To do so, we must allow the choice "Margins" in the module's settings.
Margin Options in Odoo Sales
We've unlocked this option, and now we must save it before exiting the settings. Let's pass on to the Sale Order after that. We can see the Create choice in the Odoo Sales Management Module. Make a quote out of this.
We must choose the client, invoice address, shipping address, quote templates, expiration date, price list, payment terms, and other options as seen on the tab. We'll still need to have a product. Let's use Deco Addict as an example of a client. The expiration date may be set to 4/21/2021. The price list is ours to select from. Complete all of the other information as well. Then go to the bottom of the page and select a commodity from the list.
I selected a cabinet with doors for this project. One has been chosen as the number. The subtotal is $ 800.40, and the unit price is $ 800.40. We've already spoken about it. The customer's sales price multiplied by the total number of units minus the product's total cost equals the sales profit.
We can see that the cost is 11 and the purchase price is 14. We've selected 1 as our unit of measurement. As a result, the margin = 14 * 1- 11. As a result, the Margin is $ 3.
The margin can be seen in the above picture, and a percentage of the margin is also given in brackets. The margin in the example above, which is the selling of cabinets with doors, is 21.43 percent of the overall purchase price. If we look at Odoo 13, we can see that this margin percentage is not available in that edition. Users of Odoo 14 will now use a newly added feature called margin percentage.
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