Minimum Margin

You can use this function to ensure that a minimum margin is achieved for a specific order. For a VSS order, the profit margin is the difference between the planned costs and the price that the customer pays (exclusive of tax). The minimum margin is then the minimum acceptable profit for this specific order. The minimum margin can be expressed as a percentage or an amount.
To specify a minimum margin for an order, you create minimum margin rules.

Prerequisites

In Customizing for Vehicle Sales and Service (VSS), under Order > Basic Functions > Minimum Margin, you have specified minimum margin rules in the activity Define Minimum Margin Rule. For each rule, you have decided whether the minimum margin is expressed as a percentage or an amount.
In Customizing for Vehicle Sales and Service (VSS), under Order > Basic Functions > Minimum Margin > Determination of Minimum Margin Rule, you have specified criteria for the rule in the activity Define Criteria. For example, you can associate a rule with an item category.

Features

If a minimum margin rule is relevant for an order, the system implements the rules when the order is saved. If the minimum margin is not reached, the system displays a warning message.

Example

For a parts item, you want to ensure a minimum margin of 10%. You create a rule in Customizing that specifies a 10% minimum margin. In the activity Define Criteria, you then specify that the rule is relevant for the parts item.