System Variable 1164: Allow Values Between 0 and 1 on Purchase Order Profit Margin/Markup Factor

Use this System Variable to determine if a loss rather than a profit can be assigned on Purchase Orders.

The sales value of a Purchase Order is defined by the profit margin. The cost amount is multiplied by the profit margin to calculate the sales price that will be used to invoice clients. For example, if you have a Purchase Order of 5,000 and a profit margin of 1.25, your sales price will be 6,250.

This System Variable is disabled by default. When it is enabled, you can use a profit margin of less than 1, which leads to the sales price being lower than the initial cost. This then results to a loss on the purchase.

The profit margin also applies to creditor invoices linked to the Purchase Order if System Variable 645 is enabled.

It may be necessary to perform a refresh when modifying System Variable values.