NetSuite Solution: On-the-Fly Margin Calculations

On-the-Fly Margin Calculations in NetSuite

As a NetSuite Solution Provider, The Vested Group offers tailored-made solutions that help businesses improve their processes and reach their operational and financial goals. Whether you're trying to determine product pricing, break-even points or decide which products to carry, NetSuite's On-the-Fly Margin Calculations will provide you with the insights you need.

How to Calculate Contribution Margin

Calculating your business's contribution margins can provide invaluable insights on whether or not a product or product line is contributing to your overall profitability — and if it's worth it for you to keep selling it.

To calculate the contribution margin, you'll need the sales revenue and variable cost inputs. Variable costs are any direct and indirect expenses that fluctuate based on your level of production. Everything from the cost of raw materials to shipping amounts can increase or decrease, making them variable costs associated with running your business.

Use this formula to determine the contribution margin:

contribution margin= sales revenue - variable costs

Key Features

Instead of manually calculating the contribution margin for a product or product line, On-the-Fly Margin Calculations in NetSuite handles it all for you. This solution has many features, including the ability to:

Calculate an item's gross margin amount and percentage at the line level on the sales order or quote.
Determine the gross margin amounts immediately after you enter line items.
Provide the information after the record has been saved with standard NetSuite functionality.

More About Accounting Software for Calculation Contribution Margin

If you're unsure about whether your product, product line or services contribute to your business's overall profitability, it's crucial to perform regular analyses. Instead of having to gather all of the financial data to calculate the contribution margin yourself, software like On-the-Fly Margin Calculations can do the work for you.

Use this solution to streamline the process of manually tracking and calculating the sales revenue and variable costs formula while gaining a closer look into how you can scale back or add products. Along with determining overall profitability, contribution margin software delivers insights to make more informed business decisions.

You'll be able to easily identify trends and track performance, especially when you view contribution margin insights over time. With contribution margin software, you can determine a product's break-even point. This information can guide important decisions about pricing and production, as well as how much inventory to keep in stock.

Ready to Streamline Your Operations With Advanced NetSuite Calculations?

As an award-winning NetSuite partner, you can count on The Vested Group to help you streamline your business operations. If you're searching for a solution that will quickly calculate gross margin, amount and percentages for an item at the line level, we have you covered.

With On-the-Fly Margin Calculations, you'll determine the difference between your business's sales revenue and variable costs. We also go beyond just offering NetSuite solutions and provide comprehensive pre-installation consulting. We support you every step of the way with program installation, support and customization.

Reach out today to learn more or book a NetSuite demo.