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August 14 2013
eNews #40
Rounding and GP% 

This week, we are going to take a look at some of the new features that are integrated in version 3.036. The Rounding Table allows you to establish rules that your inventory items will follow in regards to price rounding. The Gross Profit % allows you to better see how your inventory is doing and lets you get the most out of your products. Together, these two features will enhance current sales and get you the most "bang for your buck."

Rounding Table

To enable the Rounding Table option, you have to enable the "Utilize Rounding Table pricing" option in System | Company Setup | Properties | Inventory Page 2. The actual table itself is maintained and setup within IC | Support Files | Rounding Table.  

 

The maintenance screen is split into two sections: Dollars and Cents. The top section will round dollar values up to the amount entered into columns A-J. To create a new rounding rule, right click in top section. This will bring up an edit form, allowing you to enter values for rounding. Instructions are written on screen for additional help. Once all the desired values have been entered, click OK to add it to the table. In order to add, edit, or delete rules from the table now, right click on an existing rule and click the desired option.  

 

The bottom section rounds cents up to the entered values. The steps are the same as before, only you will want to right click in the bottom section. In the bottom left of the maintenance screen, there is an Example field, allowing you to test your newly created rounding rules. Clicking Close will ask if you wish to save the changes. Answering Yes will complete the process.

Gross Profit %

Within IC | Inventory File, there are some new fields regarding Gross Profit %. Using these fields can ensure you are selling each item at the correct and desired price. The first GP% we will discuss is the Cat. Cost GP%. This percentage is based on your Catalog cost. If you do not have an ECatalog cost for the item, this percentage will be 100. This field cannot be edited and shows the profit percentage you are receiving based on your MSRP versus the Catalog Cost. Retail GP% is another field that cannot be edited, but it shows the profit percentage based on your Retail versus the Average Cost of the item in your system.

 

The Replace GP% is the main gross profit percentage that can be edited and has a direct relation to the Retail Price. This value is determined by taking the Retail Price and matching it against the Catalog Cost. If there is no Catalog Cost listed for the item, the system will use the Last Cost. As stated before, changing this percentage will change your Retail price accordingly (using any Rounding Table rules if they are used). For example, if you want to make sure you receive a 50% profit on an item, changing the Replace GP% to 50.00 will ensure you receive this profit, no matter what the cost of the good being sold is. If a Rounding Table has been set up, this percentage may not remain at exactly 50.00. If you want any price up to $19.99 rounded up to $0.99 (12.49 would round to 12.99), the percentage will automatically change to accommodate that rounding rule.

 

Beside the Replace GP% is the Desired GP%. This value can be edited, but is only used as a reference. Any value entered in this field will not change any value in your system, but you can look to this value to ensure your other GP% are matching or coming close to this. If they are not, you can edit the Replace GP% or Retail Price to make them closer to the desired percentage.

Utilizing Rounding

Now that your Rounding Table has been set up and you know how GP% works and how to use it, you can begin applying rounding to retail prices in your inventory. All existing items within your inventory will not automatically apply the rounded prices. To utilize the rounding you set up, open your inventory file and locate an item you wish to apply rounding to. Once the item is found, selected, and in edit mode (click the Edit button), changing the Replace GP% will apply the rounding if the price falls within the ranges set in the Rounding Table. The GP% may fluctuate slightly, as the retail price may fall into a fraction of a penny. The retail price will not follow the rounding table if the price is manually changed. As far as Quantity Break Pricing is concerned, any break price that is set to a fixed amount (dollars) will not follow the rounding table rules. If the break price is a percent of the retail, the rounding will occur.

If you have any suggestions for future newsletters and/or feedback, please feel free to email me. Your feedback is what helps us grow and assist you as your Point of Sale software provider!

Your TransActPOS Team

Profile Systems Design Group, Inc. | 270-821-0720 | http://www.transactpos.com/
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Madisonville, KY 42431
  
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