Purpose
This measure represents net profitability and is used for impact calculations that account for all sources of margin leakage. The Pocket Margin measure is critical for understanding the true financial outcome of pricing and commercial decisions.
Business Context
Pocket Margin reflects the profit retained after deducting the Cost of Goods Sold (COGS) and all additional leakage components, such as discounts, rebates, freight costs, and payment terms. It provides a comprehensive view of profitability across customers, products, and transactions, enabling more accurate performance evaluation and decision-making.
Definition
The measure calculates the sum of pocket margin over the Agent’s filtered scope. If a dedicated Pocket Margin field is not available in the dataset, the measure should be calculated as Revenue minus COGS and all applicable leakage elements, including discounts, rebates, freight costs, payment terms, and similar adjustments.
Business Formula
Pocket Margin = Sum of Pocket Margin
Alternative Business Formula
Pocket Margin = Revenue − COGS − Rebates − Additional Discounts − Freight Costs − Payment Terms
Agent Expression
SUM(PocketMargin)
Alternative Agent Expression
SUM(Revenue - COGS - Rebates - AdditionalDiscounts - FreightCosts - PaymentTerms)