What is the exact functionality for Margin?

ERPNext Selling/CRM
1

Currently I am adding a negative margin percentage through a pricing rule for all my sale invoices.

WHY?

I am primarily doing this because I need to differentiate between MRP and the Rate in the sales invoice.
Suppose I have an item say ITEM1, having an MRP as 100. I want it to show as MRP 100 but rate as 95. Then on rate of 95 that I will add a 5% VAT again which will bring it back to somewhere around 100. This is my main goal and for that I am using a negative margin in my sales invoice.

Query

  1. Am I doing it correctly?
  2. Is there a better way to do the same thing? (I cannot add discount on the pricing rule because I need to add further discounts on invoices per item basis)
  3. What/Where it might have an effect because of margin?
  4. Will it have any wrong impact on my Accounting?
2

I thought this will solve my purpose but still didn’t because now I cannot apply discount on the fly because of the margin rule.
Can anybody help me with the logic?

3

In your taxes table, check “Tax included in basic rate” to manage this.

More help here: https://frappe.github.io/erpnext/user/manual/en/setting-up/setting-up-taxes