Gross Margin Return on Investment (IC224)

Run Gross Margin Return on Investment (IC224) to print a report of the gross margin return on investment (GMROI) percentage for items in descending order.

GMROI is based on item sales history updated to the Inventory Control application. Item sales history is updated using the Order Entry application or an interface file created by an outside source.

Note: Summarized inventory history does not include sales prices for make-to-order kit components. This report is invalid for these items.

Processing Effect

Calculations used by this form are listed below.

Gross Margin = (Total Sales Price - Total Sales Cost)/Total Sales Price.

Average Inventory = (Sum of ending inventory quantity for periods in the range selected)/(Number of periods included in the range selected).

Turnover Rate = (Sales quantity for the last 12 months)/(Average inventory).

Gross Margin Return on Investment = (Gross Margin Turnover Rate)/(1 - Gross Margin).

This program requires you to enter the period and year range for which to calculate GMROI. For example, enter

1 1993 - 4 1993

to calculate GMROI for the first four periods in1993. You choose the items printed on this report by location, report group, and/or sales class. You can also include items set up as inactive in the Item Master file (IC11.1).