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:

  1. In the Sales Order Parameters (tdsls0100s400) session, specify these margin control related parameters:
    • Margin Control
    • Gross Margin Check Headers
    • Gross Margin Check Lines
    • Target Price for Margin Control
    • Pre-Defined Hold Reason - Margin Control
  2. 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.
  3. 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.
  4. 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.

  5. 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.

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