A margin matrix sets the desired gross profit margin for supplied material items (non inventory) and sublet. Margins will automatically calculate and apply when costs are entered for the given material or sublet item. The first step is to create the number of margin matrices that you require. Then, apply margin matrix rules to determine how the margin matrices apply to the calculation of selling prices.
Margin matrix rules determine how margin matrices apply to the calculation of selling prices. The Catalog Labor Matrix is a method of automatically incrementing catalog labor times by adding a consistent factor/percentage to the labor guide according to vehicle characteristics (year, make, model).
In addition to the help articles, you can view detail walkthroughs of several margin/matrix features in these webinar segments:
Part 1 - Introduction to Margin Threshold
Part 5 - Questions and Answers
Each of the sections below contains a link to the corresponding webinar segment, along with a short tutorial that contains cross-references to the help articles.
A margin threshold defines the acceptable gross profit margin (acceptable low & high) for Materials, Sublet, Labor and Service Packages within each Service Category.
If you're ready, watch the first segment of the webinar by clicking the link below, or continue reading below for a summary of the major aspects of this feature.
At the bottom of the work order main window, click on the Analysis tab to view a snapshot of the work order profitability for each line item, service, and the entire work order. The percentages are color-coded to reflect the margin thresholds:
Black - the margin is within the acceptable low and acceptable high
Green - the margin exceeds the acceptable high
Red - the margin is below the acceptable low
Learn more in the Work Order Profitability Analysis article.
For edits to an existing Margin Threshold, click the Setup button in the Home ribbon and then click the Margin Threshold in the left pane.
To create a new Margin Threshold, navigate as follows: From the Home ribbon, click the Setup button and then locate Service Categories > Margin Thresholds in the left pane. From there, you can search for specific thresholds and edit or delete them. You can also add a margin threshold, as given in the explanations in the Margin Threshold Setup article.
For reporting and analysis purposes, an Employee Rate can be entered for a particular employee for use in the labor cost calculation. This rate should be an estimate of the hourly costs to the company for a particular employee (such as a technician). As such, the rate could include a buildup of any other costs (such as benefits)–in addition to the base labor rate for the employee. The labor cost is calculation is the employee rate multiplied by the billed time, and will be used in any report or analysis that involves a labor cost.
| NOTE: Margin Thresholds have no relationship to the setting of sell prices. Margin Thresholds only provide the ability to view, analyze and monitor profit margins after the cost and sell prices have been entered. |
Learn more in the Employees Setup article.
A margin matrix sets the desired gross profit margin for supplied material items (non inventory) and sublet service. Margins will automatically calculate and apply when costs are entered for the given material or sublet line item. The first step is to create the number of margin matrices that you require. Then, apply margin matrix rules to determine how the margin matrices apply to the calculation of selling prices.
If you're ready, watch the first segment of the webinar by clicking the link below, or continue reading below for a summary of the major aspects of this feature.
A margin matrix is applied from either of the following:
Material & Sublet line item properties
Supplier Catalog Lookup
On the work order, a colored flag appearing to right of the Margin field will identify the margin status:
Blue flag - the Desired Margin is achieved .
Green flag - Desired Margin is exceeded.
Orange flag - the Desired Margin is not achieved.
From the work order line item, manual edits and overrides can be made to the Desired Margin, Price for Material line items, Desired Margin, or Rate for Sublet line items.
| NOTE: The Margin Matrix has no relationship to Inventory Materials Price Levels, although can be manually applied using the Inventory Batch Update. |
Learn more in the Margin Matrix article.
To access the Margin Matrix setup feature, click on the Setup button in the main ribbon,then locate and click on the Margin Matrix in the left window pane. From there, you can add, edit, or delete a margin matrix.
You can also add, edit, or remove a margin breakpoint. The horizontal axis denotes cost, and the vertical axis denotes gross profit margin.
There are two types of calculation:
Standard - provides a “rigid step" transition, using the Cost From / Cost To values.
Linear - provides a "smooth" transition, aligning the Cost From / Cost To values with the Gross Profit Margin.
| NOTE: The are no limits to the numbers of entries for either the Margin Matrix and Margin Breakpoints. |
Margin Matrix Rules determine how the Margin Matrix apply to the calculation of the sell prices.
If you're ready, watch the first segment of the webinar by clicking the link below, or continue reading below for a summary of the major aspects of this feature.
To access the Margin Matrix Rules feature, click on the Setup button in the ribbon, then locate and click on the Margin Matrix item beneath the Location Setup node in the left window pane. Then, click the Margin Matrix Rules item. From there, you can add, edit, or delete margin matrix rules.
Keep the following in mind with respect to the order of application for margin matrix rules:
Margin Matrix rules will be applied in priority from top to bottom.
More specific rules should be set above, in the list than less specific rules.
| Number of rules: A Margin Matrix can have one or many rules, as necessary. |
Learn more in the Margin Matrix Rules article.
The Catalog Labor Matrix is a method of automatically incrementing catalog labor times by adding a factor or percentage to the labor guide according to vehicle Year, Make and/or Model.
If you're ready, watch the first segment of the webinar by clicking the link below, or continue reading below for a summary of the major aspects of this feature.
To access the Catalog Labor Matrix feature, click on the Setup button in the ribbon, then locate and click on the Catalog Labor Matrix item beneath the Location Setup node in the left window pane. From there, you can add, edit, or delete a margin matrix.
The Catalog Labor Matrix are automatically applied only when using the Catalog Lookup.
Catalog Lookup is available from any of the following:
Work Order ribbon > Catalog Lookup button
Labor line item - right-click the menu
Labor line item properties
Within the Catalog Lookup, a Catalog Labor Matrix is identified by a “ * ” in the Time column. To view the Time and Factor that will be applied, hover over the time value. Labor Times can be manually adjusted as desired at the work order - labor line item properties.
Keep the following in mind with respect to the order of application for Catalog Labor Matrices:
Catalog Labor Matrix will be applied in priority from top to bottom
More specific Catalog Labor Matrix should be set above, in the list than less specific.
| Number of rules: A Catalog Labor Matrix can have one or many entries, as necessary. |
Learn more in the Catalog Labor Matrix article.
Click the link if you'd like to hear the Q & A session for this webinar.