Optimise Your Pricing Using Odoo Sales
by Khurram Iftikhar
Certain businesses require
the real-time calculation of profit margins to enable sales managers to suggest
the most suitable price to customers. In this scenario, the sales manager
examines the margin on the order to determine whether an extra discount can be
given to the customer or not.
Steps to Enable Margins Functionality in Odoo Sales App
To enable this feature in Odoo, Install the Sales app and activate the ‘Margins’ functionality.
Step 01: Install the Sales Management application.
Step 02: Go to Sales > Configuration > Settings, select Margins, and apply the setting. This will show margins on orders.
Step 03: Now, create a new product and set the Sales Price and Cost of it. I have entered the $850 sales price and $600 as the cost price.
Step 04: Let’s create a quotation, select the customer on the quotation, and the product on the order line. The margin will be computed as soon as you select the product, the difference between Unit Price and Cost is the margin. The Margin is computed based on the difference for each line on the sale order.
In this example, the unit
price is 850 and the cost is 600 (850 - 600 = 250 Margin). Now, it will be
easy for the sales manager to check what the margin on the quotation is.
Tip: Taking a broader perspective, a sales analysis report can provide insights into the overall sales margin of different sales teams within a company, as well as allow for monitoring of margins against individual sales.
