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is there a way to calculate purchase order profita...
# general
l
is there a way to calculate purchase order profitability in netsuite?
e
Profitability would not live on the purchase order. I don't think this functionality exists because there should never be a use case for the profitability on a purchase order. Purchase Orders are inherently expenses not revenue.
l
but it would help if we wanted to pay a purchasing agent commission based on PO profitability
e
There is no profitability on a purchase order. it is solely an expense.
Are you looking to pay the purchasing agent a commission of the total purchase price?
l
they buy items a b c and D and we sell them in a week. Based on the profit that we made on those items, we pay them commission for that Purchase order
e
This is a question that doesn't make sense. The end goal of what you are looking for here is the profitability off the sales order.
You will need to run this report off the sales order. The Sales order has an estimated profitability function as long as your PO and SO are linked. I Do not think this functionality will work with stand alone PO.
However, we will want to run the commission off of the actual profitability and not the estimate so our numbers are correct.
Expanding off the paid on commission, there are multiple ways to do this, are items fixed % commission, fixed $ amount commission, or something else?
l
the same item is bought by different people at different prices from different vendors that same item is being sold at different prices to different customers at different times how do we measure the effectives of a purchasing agent
if we run SO profitability, some orders will be profitable, some others wont depending on the purchase price but we want to know which buyer brought more profit
e
Well I think the end result is the same here regarding what we need. We will need the Sales Price (-) Freight (-) other expenses and then we will need to subtract the purchasing price of the items to get to the profitability.
The end result is that we should be taking our sales order sales $ Total and subtracting out any expenses we are booking to our chart of accounts, and that will get us to the profit amount for that order, item, etc.
What you do from there is up to you, you can assign custom commission rules to certain vendors or items.
l
i understand - thanks for explaining this
e
no problem
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