This page provides summary of the Formula Expressions used in the Margin Inconsistency Agent (Reference).
Product Margin Rate
Definition
The weighted gross margin percentage for the current period. Calculated as the total margin divided by the total invoice price for all included transactions in the selected period. This metric reflects the overall profitability as a percentage of revenue.
Formula
SUM(Margin)/ NULLIF(SUM(InvoicePrice),0)
Margin Below Group Average
Definition
The difference between a product’s current margin rate and its product group’s average margin rate. Positive values indicate the product is below the group average.
Formula
(s2.GroupAvgMargin - s1.ProductMarginRate)
Revenue Impact if Brought to Average
Definition
The estimated additional revenue that could be realized if the product’s margin rate were raised to the group average, holding current revenue constant.
Formula
(s1.ProductRevenue * ((s2.GroupAvgMargin - s1.ProductMarginRate) / 100))
Current Margin Rate
Definition
The product’s margin rate in the current period, calculated as total margin divided by total invoice price for the product.
Formula
s1.ProductMarginRate
Group Margin Rate
Definition
The average margin rate for the product group in the current period, calculated as the total margin divided by the total invoice price for all products in the group.
Formula
s2.GroupAvgMargin
Suggested Margin Rate
Definition
A recommended margin rate, calculated as the average of the product’s current margin rate and the group average margin rate.
Formula
(s2.GroupAvgMargin+s1.ProductMarginRate)/2