Product margins after freight and credit notes, seen for the first time
The largest product group had a 31% margin. With freight and credit notes it was 17%.
margin
of the largest product groupproduct groups
with their real margincost types
freight and credit notes assignedChallenge
Margins per product group were calculated before freight and credit notes. These costs sat on collective accounts and were never assigned to a product.
So all 38 product groups looked better than they were. Prices and range decisions were made on that basis.
Solution with Arc
Arc assigns freight and credit notes to the orders, and so to the product groups, they come from.
Arc now shows the margin per product group after all costs, with the orders behind it.
Result
The largest product group had a 17% margin instead of 31% once freight and credit notes were included.
For the first time, the real margins of all 38 product groups are visible, as a basis for pricing and range.
How it runs with Arc
Your ERP has the data.
Arc does the work.
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