[V23] The Margin Calculation For Franchise Orders In MFCS To Be Calculated Differently (Doc ID 2984119.1)

Last updated on OCTOBER 31, 2023

Applies to:

Goal

Customer have been implementing franchise orders in MFCS. While deep diving into the calculations of margins and upcharges, we noticed that the margin that the system calculated uses a formula which is as follows,

UNIT COST OF THE ITEM * MARGIN PERCENTAGE
Eg: 100 * 5% (i.e. 0.05) = 5
Thus, the actual unit cost of the item would be 105 (100 +5)

However the business has stated that this value is the 'Markup' and not the 'Margin' percentage. They have said that the margin calculation should look like the formula given below,

UNIT COST OF THE ITEM / (1 - MARGIN PERCENTAGE)
Eg: 100 / (1 - 5%) (i.e. 0.95) = 105.2
We would like to know if there is a way for us to implement this new calculation for the margin. 

Solution

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