QuickBooks™ Point of Sale: Price / Cost Relationship
Note:The ability to see cost fields, including margin and markup and other fields related to cost, can be controlled by security rights. If you do not have the right to view item costs, the fields will be masked like this “*****”. This right affects cost fields in inventory and on all documents and reports.
Margin (Margin % field) expresses the profit relationship between what you paid for an item (average unit cost) and its regular price. Markup (Markup % field) is an alternative way to express the difference between an item’s cost and it’s price. Markup is a simple percentage increase from the item cost.
View Price / Cost / Markup
- 1) Open the Edit screen for an inventory item
- 2) Click the Pricing button, next to the Reg Price field
- 3) Now you can see the Price Level and Calculation window
There is an inter-relationship between the margin/markup fields and the other price/cost fields as follows:
- Enter either a margin or a markup percentage, and Point of Sale will calculate and display the other value for you. The two fields have identical behavior.
- Define a margin or markup in a department record, and Point of Sale will calculate your regular price and the prices at your optional price levels for you as new items are added to inventory in this department (if the regular price is not manually entered).
- If you or a receiving voucher update the average unit cost, the margin and markup percentages are recalculated. Prices are recalculated only if previously $ 0 (zero), although you can edit the price yourself from the receiving voucher.
- Edit the margin or markup manually for an existing item in inventory, and Point of Sale will recalculate your regular price and the prices at your optional price levels.
- Edit your regular price; the prices at other price levels are recalculated to maintain your specified markdown percentages. The margin and markup are also recalculated.
- Edit the price or markdown percentage of any optional price level; the change to one price level has no affect on other prices.