Order Hold Codes for Margin Checking

You set up a hold code to verify that all sales orders or sales order detail lines meet any margin criteria that you specify.

The system uses this equation to calculate margin:

(Price – Cost) ÷ Price = Margin

For example, if you purchase an item for 42 cents and sell it for 1.00 USD, the calculation is:

(1 - 0.42) ÷ 1 = 0.58 or 58 percent

You can set up a hold code that verifies the sales margin percentage of a detail line or an entire order. If you set up a order hold code that compares the sales margin to detail lines in the sales order, the system verifies that each detail line is between the minimum and maximum margins that you specify. For example, if the sales margin is between 25 percent and 30 percent, but the margin for one item is 35 percent, the system places the order on hold.

When you set up hold code information that verifies the sales margin of the order total, the system verifies that the order total meets the minimum and maximum margins that you specify. For example, if the sales margin is between 25 percent and 27 percent, and the margin for one item is 28 percent, but the margin for the order total is 25 percent, the system does not place the order on hold.

You set up the order code for margin checking by entering the hold code in the Order Margin Check or Order Line Margin Check processing option, located on the Order Holds tab in the Sales Order Entry program.