SA Administrator Options - Sales History - Customer field descriptions

The SM Administrator Customer Ranking Report uses this field when the Calc From option is set to Profit. The system deducts the estimated cost of processing an order from the margin, and the report reflects an adjusted gross profit. Use this option to include fixed overhead costs, which are often missed when considering profitability.

If a customer places 10 small orders within a year, your profit is lower than if a customer places one large order for the same total amount. If you estimate that the cost to process an order is $5.00, then 10 orders costs $50.00 although one order only costs $5.00.

If you select the Calc From Profit option in the SM Administrator Customer Ranking Report, the system:

Multiplies the cost you estimate by the number of invoices year-to-date on the SM Setup Customer Totals record.
Subtracts the amount calculated from the customer’s margin (net sales - cost = margin) to determine the customer’s classification.

For example:


1 Order equals a total of	10 Small Orders equal a total of
Net Sales = $100.00 Less Cost - $50.00 Margin = $50.00 Less Order Cost - $5.00 Profit = $45.00	Net Sales = $100.00 Less Cost - $50.00 Margin = $50.00 Less Order Cost - $50.00 Profit = $0.00

Customers can be classified into as many as 13 classifications in the SM Administrator Customer Ranking Report. Use the entries made in the classification table. The 13th Class is reserved for inactive customers. This field value determines which customers are listed in Class 13. The customer is included in Class 13 for these reasons:

A customer’s sales history shows no activity within the last 12 months
The sales totals are less than the amount entered in this field

Customer classification is a method of grouping your customers together based on a percentage of sales, margin, or profit in the SM Administrator Customer Ranking Report. All customers are included in the classification except new customers with less than six months activity history. There are 13 Classes available for use in the SM Administrator Customer Ranking Report. You define 12 of the classes with percentages. The 13th class is for inactive customers. You do not have to use all 12 classes, but they must total 100%. If you are using less than 12 classes, the system still uses Class 13 for inactive customers.

Customers are placed Class12 when the SM Administrator Customer Ranking Report is at Class 12 and a percentage is set for each class, and active customers exist that are not yet classified. This ensures all customers are included in the totals.