Use this feature to specify minimum gross-profit percentages via which you can monitor your profit margin for sales order line items whose default selling price is changed during sales order entry. If the edited price does not meet the minimum gross profit percentage, the system issues an exception alert.
For example, assume a product containing a promotional price appears on an order, and the promotional price defaults. Even if the promotional price is below the minimum gross profit percentage, the system does NOT issue an exception. However, if the user edits the default selling price on the order and the edited price is below the minimum gross profit percentage, the system issues an exception.
Basically, you first specify a minimum gross profit percentage, then you specify the "check level". The check level determines how the system reacts when the profit margin for a product sold does not meet the minimum gross profit percentage. For example, depending on your check level, you can have the system generate an exception, require a security override, or both. Once you have these settings in place, use the Report Sales Exceptions routine to list exceptions generated by this alert feature.
You can specify a minimum gross profit percentage globally, at the store location level, and at the product level. STORIS uses a hierarchy to determine minimum gross profit percentage for sales order line items. When you sell a product, the system checks the following files for minimum gross profit percentage, in the following order using the first one it finds:
Advanced Product Settings - Minimum Gross Profit % field on the Cost tab
Group Settings - Minimum Gross Profit % field
Category Settings - Minimum Gross Profit % field
Warehouse/Store Location Settings - Gross Profit % field on the General tab
Point of Sale Control Settings - Minimum Gross Profit % field on the Profit and Costs tab (this is the global setting)
After you specify a minimum gross profit percentage at one or more of the above fields, you must then indicate the check level. When the system determines that the profit margin of a product sold does not meet the minimum gross profit percentage, it checks the following files in the following order to determine the check level:
Minimum Gross Profit Not Met field in the Warehouse/Store Location Settings
Minimum Gross Profit Not Met field in the Point of Sale Control Settings (global)