Slide 1

Slide notes: Profit Categories are used to apply a markup on Issues from Stock. Stock Issues are Stock used for internal consumption, i.e. not sold to a Customer, but instead issued to a Cost Centre, a Job or an internal AR Debtor Account.

 

 

 

Slide 2

Slide notes: Let's have a look at a Profit Category.

 

 

 

Slide 3

Slide notes: This Profit Category has zero markup. A Profit Category always has a Code and a descriptive label to recognize it by. And it has a stated percentage markup, which, as we can see here, may be zero.

 

 

 

Slide 4

Slide notes: In this example, we have a 10% markup. So what does that mean? The meaning is simply that when Stock is issued and this markup is at play, then the charge price will be Stock Average Cost or Stock Cost PLUS the markup percentage.

 

 

 

 

Slide 5

Slide notes: The Profit Category is not in any way connected to the Stock Item, and the same Stock Item can be issued with different markups, depending on where the charge or allocation is going. Bearing in mind that these markups apply only to Internal Stock Issues and do not apply to Customer Sales, for that is separately managed in the Retail Price Catalogue. So the internal Stock Issues will invariably result in the allocation or charge being to the General Ledger, or to Jobs, or to internal AR Debtor Accounts.

 

 

 

Slide 6

Slide notes: So here we are looking at a Ledger Account, and if we go to the Settings, then we can see what markup will apply for Stock Issues that are charged to this Cost Centre.

 

 

 

Slide 7

Slide notes: And here is the indicator. If there is no indicator, then no markup is processed. In the case of Jobs, there is always a linked GL Account as well, and the markup indicator on the GL Account is the one that will be applied.

 

 

 

Slide 8

Slide notes: Next, we look at an AR Debtor Account, and here also we can go to Settings to see the markup indicator.

 

 

 

Slide 9

Slide notes: And here is the indicator. This indicator on a Debtor Account is ONLY used for Stock Issues, and NOT for Retail Customer Sales.

 

 

 

Slide 10

Slide notes: