Overview of margin control
You use margin control to
control margins for sales orders and quotations that are created for standard
items. If the net price of the sales quotation or 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 specified to use margin
control:
- In the Sales Order Parameters (tdsls0100s400) session, specify these margin control
related parameters:
- In the Margin Control Parameters (tdsls0120m000) session, specify the action that must be
taken when a sales order or quotation falls outside the specified
margins.
- Select the Gross Margin Control check box in the Sales Order Types (tdsls0594m000) session if gross margin control must be executed for
the order type.
- Select the Can Release Margin Held Orders check box in the Sales User Profiles (tdsls0139m000) session if a user can unblock sales orders/quotations
that are blocked because margins are exceeded.
-
In the Items - Sales (tdisa0501m000) and Sold-to Business Partner (tccom4110s000) sessions, 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 specified, several checks are automatically executed and exceeded
margins are logged.
For more information, refer to Using margin control.