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Chapter 5. Inventory
Lineal Feet = Number of lineal feet in one unit
Length
10' piece = 10.0000
16' piece = 16.0000
Others = Any other item requiring a conversion factor
Roll of insulation of 83-1/3 sq ft = 83.3334
Ceiling tile of 40 square feet per box = 40.0000
If the item is to be priced and controlled by each, no conversion factor is
needed. Leave blank.
EXPECTED GROSS MARGIN
Field #17
It is important to establish an acceptable range of gross margin for all items in
inventory. Gross margin % is calculated as follows:
Sales - Cost of Sales
Sales
Each item is assigned an expected gross margin percent that defines what the
lowest acceptable gross margin is expected. In conjunction, a low and high
margin percent is defined storewide in the Variable File which extends the range
of expected margin. For example:
Expected Same for all items
Gross
Margin Low % High % Acceptable range
Item A 25% 5% 10% 20% to 35%
Item B 20% 5% 10% 15% to 30%
Item C 30% 5% 10% 25% to 40%
Each time an item is sold at POS, the gross margin % is calculated and compared
to the expected gross margin for the item. If the gross margin is below the
acceptable range, the terminal will beep (if the option is selected to notify you of
bad profit) before accepting the line. Also, if your password allows you to view
costs and margins for each line item, an “M-” or “M+” will appear next to the
displayed costs if the gross margin is outside of the acceptable range. In addition,
the following reports will show exceptions to the acceptable gross margin range:
Transaction Register - Under the report heading “M”, an
M-
or
M+
will be
printed if the gross margin percent was below or above the expected
range on at least one item.
Transaction Detail - In both the report heading and detail lines, a
-
or
+
will be printed if the gross margin percent was below or above the
expected range.
Daily Sales by Item Report - There is a report parameter that allows you
to print all items above or below the expected range.
178 Dimensions 14