the Margin is a business ratio that indicates the percentage difference between the sales price (sales revenue) and a certain cost base. It is a key indicator of the profitability of a company, product or service. There are different types of margins that provide different insights: The Gross margin (gross profit margin) shows how much of sales is left over after deducting the direct costs of production or goods. The Operating margin also takes into account operating overheads and measures the profitability of the core business. The Net margin finally shows the net profit in relation to sales after deduction of all costs, including interest and taxes. Continuous monitoring of margins is essential for pricing and cost control. In modern ERP systems, margins are displayed as important KPIs in real time, for example in the SAP Business One Cockpit. For in-depth analyses, specialised tools such as the Versino Financial Suite the option of analysing margins in detail by salesperson, customer, item or even per individual invoice.
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