Nit Pick on Margin Terminology - Printable Version +- webERP Forum (http://www.weberp.org/forum) +-- Forum: webERP Discussion (http://www.weberp.org/forum/forumdisplay.php?fid=1) +--- Forum: Problems / Bugs? (http://www.weberp.org/forum/forumdisplay.php?fid=8) +--- Thread: Nit Pick on Margin Terminology (/showthread.php?tid=7944) |
Nit Pick on Margin Terminology - VortecCPI - 11-29-2017 I hate to even bring this up but I will... "GP %" and "Gross Margin" and "Gross Profit Percent"... Markup = (Price - Cost) / Cost < For reference Margin = (Price - Cost) / Price < Used in webERP In my opinion... The term "GP %" should really be "GM %" because it is a margin calculation (M), not a profit amount (P). The term "Gross Margin" should really be "Gross Profit" because it is a profit amount, not a margin calculation. The term "Gross Profit Percent" should really be "Gross Margin Percent" because it is a margin calculation, not a profit amount. I bring this up only because we just had discussions around Margin versus Markup versus Profit a few days ago. There was a lot of misunderstanding and misuse of the terms by the owners. In our reports I have changed the language file to reflect what is written above. All that being said the financial reports coming out of webERP look great. Very good work and a big hats-off to all of you who worked on this! RE: Nit Pick on Terminology - TimSchofield - 11-29-2017 I think this is a transatlantic difference. Here in the UK gross margin is used less often, mostly it is referred to as Gross Profit, defined in my copy of Frank Wood as: a Excess of sales over cost of goods sold or b Sales less Purchases or c Cost of goods sold + Opening stock or d Net profit less expenses of the period. Probably the place to change this is in the en_US translation file. Tim RE: Nit Pick on Terminology - VortecCPI - 11-29-2017 Thank you Tim. I should likely always preface my comments with my locale so it has better context. The owners had a big argument over this terminology because it can be confusing. RE: Nit Pick on Terminology - TimSchofield - 11-29-2017 It can be confusing and webERP does sometimes mix UK/USA terms somewhat arbitrarily such as Stock/Inventory Suppliers/Vendors etc. It's one of those not particularly exciting jobs that need doing at some point Tim RE: Nit Pick on Terminology - VortecCPI - 11-30-2017 While I agree there may be a few stragglers in the .PO file you guys have done a great job with USA terms. There were only a few places we still had "Supplier" in lieu of "Vendor". After over 100 hours of setup, config, and initial testing I am thoroughly impressed with webERP. |