We are a trading company and normally add a fixed margin of say 3% to every item quoted. Right now we are using a single price list for buying and selling and then for every item add a negative amount in the “discount” field.
When quoting many items this can become cumbersome, and most importantly there is always the risk of forgetting the negative sign and actually adding a discount.
Therefore I was wondering if there was an established way of adding a margin/commission to every item invoiced? For example, could the following be recommended:
- Add an income account “commissions”
- In the “Taxes and Charges” section of the quotation
- Add a fixed margin on net total
- Check “Is this tax included in basic rate”
- Select the “commissions” account as account head
Some background information:
We are dealing with a large range of products, each of which frequently changes prices, and those prices are based on a large variety of different configurations as well as the total quantity ordered. In other words, using pre-defined price lists or even standardizing products unfortunately is not a valid option for us.
At the moment we are using an ad-hoc price list as was suggested by @anand in this forum post:
We also made the following changes in the Selling Settings section in order to be able to change prices when amending a quotation:
- Uncheck: Maintain Same Rate Throughout Sales Cycle
- Check: Allow User to Edit Price List Rate in Transaction
Due to frequent price changes and customers changing specifications as well as the order quantity, quotations in our business are are seen as drafts until an actual order is placed.
Cheers,
Stefan