Calculating margins and managing costs

Toolcie allows you to assign costs for each of the entries on your quotes and invoices. The costs correspond to your expenses incurred. For example, for a product, the cost may correspond to the purchase price tax excluded, packaging expenses or delivery expenses.

Assigning costs allows the software to automatically calculate the margin and its margin rate. The margin in Toolcie corresponds to the total tax excluded, minus costs. The percentage of margin is the same as the “markup” in technical terms.

How do I assign the cost for an item or for a custom entry?

To assign the cost or calculate the margin for a product, service or custom entry, check the “Checkbox Calculate margin” box when adding or editing the item.

You can complete the “Cost” field and the “Margin as %” field. The “Price”, “Cost”, and “Margin as %” fields are linked. Completing two of these fields will automatically fill the third.

You can link or unlink the “Price” and “Cost” fields by clicking the button located on the right Button associate price and cost. When the two fields are linked, any change to one of the two fields will automatically result in a modification in the second based on the margin rate.
This option is just an aid for filling in the fields. It is not saved in a database.

Managing fees and costs

When creating quotes and invoices, you can add fees that are visible to the customer. The software interprets these fees by default as costs that affect the margin.

For each fee, you have the option to indicate that it should be treated as income by checking the “Checkbox Treat as income” box. When the box is checked, the fee will be treated as having a margin of 100%.

An additional box that can be checked, “Checkbox Cost”, allows you to assign the cost associated with the fee. The cost can be set as a percentage or as a fixed amount.

Display of the margin and its margin rate

The margin and its margin rate are shown on quotes and invoices in editing mode for each entry. The overall margin is shown below the total amount for each group.

The margin also appears on the pages listing all documents, as well as on the Toolcie dashboard. You can also see the total margin earned per customer and per product.

Link to this article: https://toolcie.com/en/support/k/calculating-margins-and-managing-costs
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