Overview of margin control
You use margin control to
control margins for sales orders and quotations created for standard items. If
the net price of the sales quotation or sales order exceeds the defined
margins, the appropriate action is performed. For example, if the margin of an
order is exceeded, the order is blocked.
Setting up margin control
The following master data must be defined to use margin
control:
- Use the Gross Margin Control check box in the Sales Order Types (tdsls0594m000) session to define whether gross margin control must be
executed for the order type.
- Use the Can Release Margin Held Orders check box in the User Profiles (tdsls0139m000) session to define whether a user can unblock sales
orders/quotations that have been blocked because margins are exceeded.
- Use the Sales Order Parameters (tdsls0100s400) session to define various margin control
related parameters.
- Use the Margin Control Parameters (tdsls0120m000) session to define the action that must be
taken when a sales order or quotation falls outside the defined
margins.
-
In the Item - Sales (tdisa0501m000) session and the Sold-to Business Partners (tccom4110s000) session, you can specify:
- The upper margin
(the percentage by which the target price can be exceeded).
- The lower margin
(the percentage by which the price can be lower than the target price).
Types of margin control
You can specify the following margin types:
- (Price) margin control
- Gross margin control at detail level
- Gross margin control at header level
For more information, refer to Types of margin control.
Using margin control
If margin control is implemented, when a sales order or
quotation is entered, several checks are automatically executed and exceeded
margins are logged.
For more information, refer to Using margin control.