What is Profit Calculator in Salesforce and Why is it Useful
Profit Calculator generates a real-time calculation of the gross margin achieved on any given product added to an opportunity. Through a setting on the Flexpricer Settings page it’s possible to either display or hide the calculation from your sales users in the Flexpricer interface.
Simple Setup of Flexpricer’s Profit Calculator
- Go to the Settings tab on the Flexpricer Settings page
- Under Premium Features | CPQ for Finance section, check the box next to Profit Calculator. This will enable the Profit Calculator.
- If you wish to share the profit / margin calculation with sales users, optionally check the box next to Display the margin/contribution calculations to users in the Flexpricer® interface
- Edit the Product page layout and add the following fields to the layout
- Unit Cost
- Unit Cost % of List Price
- Unit Cost % of Sales Price
- Unit Cost % of Discounted Price
- Edit the PricebookEntry page layout and add the following field to the layout
- Unit Cost
How Profit Calculator Works
Fixed Costs
- If a currency-specific value is entered in the Unit Cost field on the PricebookEntry record of a Product, then data in the field is used for margin calculations (even if the value entered is zero).
- If a value is entered in the Unit Cost field of the Product record (even if it is zero) AND the Unit Cost field on the PricebookEntry record is blank, the Product’s Unit Cost field data is used for margin calculations irrespective of currency.
Variable Costs
- If a percentage value is entered into the Unit Cost % of List Price field, then (in addition to the value in a Unit Cost field), a further cost is added, calculated as the percentage multiplied by the List Price.
- If a percentage value is entered into the Unit Cost % of Sales Price field, then (in addition to the value in a Unit Cost field), a further cost is added, calculated as the percentage multiplied by the Sales Price of a line item.
- If a percentage value is entered into the Unit Cost % of Discounted Price field, then (in addition to the value in a Unit Cost field), a further cost is added, calculated as the percentage multiplied by the final price of a line item, after Sales Price adjustments and discounts have been applied.
Margin Calculations are made by deducting the total Unit Cost (including those calculated by the percentages) from the discounted Sales Price of the Opportunity Product (or Quote Line Item) and saving/displaying the result as a value and as a percentage of the discounted Sales Price.