Q: I've stocked a product, and I think the margin percentage is wrong. How is it calculated?

A: It sounds like you're looking at your product's profitability! Let's clarify how Gross Margin is calculated.

Gross Margin is what we use to measure a product's profitability. It shows the profit you make from selling a product before other business expenses are considered.

Here's the formula we use:

• Net Sales Value: The sales price after removing tax.
• Cost of Sales: The cost to buy or produce the product.
• Gross Margin = Net Sales Value – Cost of Sales

To calculate the percentage:

• Gross Margin % = (Gross Margin / Net Sales Value) × 100

In simpler terms, we take your total sales amount (after tax) and subtract the cost of the product to get your Gross Margin.

If you've reviewed this and still believe the calculation is incorrect, please let us know.