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About setting up profit calculation [AX 2012]

Updated: August 26, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

In the Project statements area of the Project management and accounting parameters form, you can choose how the profit calculations that you can make in the Project statements form are made.

The parameter setup affects the output of the Factors fields on the General tab in the Project statements form.

Profit calculation can be based on either the gross margin or the value-added amount, and it can be viewed as a percentage or a factor.

If you choose to calculate profit based on a value-added ratio in the Project management and accounting parameters form, you can define the ratio in the following ways:

  • Value-added factorValue-added amount ÷ hour costs

  • Value-added ratioValue-added amount x 100 ÷ revenue

  • Value-added markup percentageValue-added amount x 100 ÷ hour costs

If you choose to calculate profit based on the gross margin ratio in the Project management and accounting parameters form, you can define the ratio in the following ways:

  • Markup factorGross margin ÷ total costs

  • Contribution ratioGross margin x 100 ÷ revenue

  • Markup percentageGross margin x 100 ÷ total costs


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
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