The calculation of Gross Profit for a Sales BOM depends on the setting selected in the For a Sales BOM in Documents, Display: area of the Document Settings -> General tab.
Setting 1 - Price and Total for Tree Only
If this option is selected, the system allows the user to enter the sales price of the sales BOM (parent) item.
In this case, only the parent item has a sales price, its components do not have their own sales prices. The Unit Price fields of the component items are greyed out and not accessible.
Standing on the sales order, access the Gross Profit window by clicking on the Gross Profit icon from the Toolbar._ The user can also right-click on the document header and then select the Gross Profit option. Alternatively, access the Goto -> Gross Profit or Ctrl+G.
In the Gross Profit window, when the Base Price by field is set to Item Cost, SAP Business One shows the Gross Profit as 100% with a Base Price of zero. As the Price and Total for Tree Only option is selected, the component items do not appear in the Gross Profit window.
For an item that is defined as a Sales Type BOM, the item is a non-purchase and non-stock item. Hence, the parent item merely acts as a 'holder' for all the components. If the Sales Type BOM does not have a defined item cost in the Item Master Data, the resulting Item Cost Base Price is zero, resulting in a gross profit of 100%.
When opening the Sales Analysis Report, the parent item shows the corresponding values. The component items are shown but with zero as sales and gross profit amounts, and gross profit percentages.
Setting 2 - Price for Component Items
If this option is selected, the system will automatically populate the Unit Price fields of the component items. The Unit Price field of the parent from the Sales Type BOM will now be greyed out and not accessible. The individual sales prices of the component items of the Sales Type BOM are automatically populated as per the system defaults or can be updated manually by the user.
In this case, the components show sales prices in the Gross Profit window, including the Gross Profit Base Price. The gross profit is then computed based on the individual component's sales price and cost of sales. The gross profit will only be computed if the component item has a defined item cost in the Item Master Data or has price defined in the selected price list. The manner in which this is decided is based upon the selection in the Base Price by field in the Gross Profit window.
To set the default Gross Profit Base Price in the Gross Profit window, select the relevant option in the Base Price Origin field in the Calculate Gross Profit area of the Document Settings -> General tab.
When opening the Sales Analysis Report, the component items appear in the report with the corresponding values. The parent item is shown, but with zero as sales amount, gross profit and gross profit percentage.
The system is currently unable to summarize the costs of the components for a Sales BOM item. Costs are only shown for a Production Type BOM.If the Price and Total for Tree Only setting is selected, then the following workarounds can be used to show an Item Cost in the Gross Profit window.
1. Set the Base Price by field to Manual or options other than Item Cost in the first document of the cluster. When using these options, the user can manually update the value in the Base Price by field.
2. If the Base Price Origin is set as Price List in the Document Settings, define the value for that price list in the Bill of Materials of the sales BOM . For example, if Discount Purchase Price is set in the Document Settings, set a value in the BOM. This price list will then be shown in the Gross Profit window and also in the Sales Analysis Report.
3. If the Base Price Origin is set as Item Cost in the Document Settings, set the valuation method to Standard Cost in the Item Master Data of the parent from the Sales BOM. Then, enter a value in the Item Cost field. This item cost will be shown in onto the Gross Profit window and onto the Sales Analysis Report.
When using a parent Sales BOM and Item Cost, the system does not dynamically recalculate the item cost. Hence, the system does not update the gross profit when the data is copied into a target document. Thus, it is important to define the correct Gross Profit Base Price value in the first document of the transaction series.
For example, if a typical business process is from Sales Order -> Delivery -> AR Invoice, the Gross Profit Base Price value must be defined in the Sales Order. This ensures that the Gross Profit Base Price value is copied onto the succeeding target documents (e.g. Delivery, AR Invoice).
In the workaround described in point 1, a GBP 200.00 was defined as a Manual Base Price in sales order 83. When this document is copied to a delivery document, the delivery will show its Manual Base Price as GBP 200.00. This is copied from the sales order. If the Base Price has changed at this stage, then it must be updated manually.