Margins

The sales margin represents the profit earned from selling a product or service after deducting all associated costs.

In the Odoo Sales application, margins can be displayed directly on quotations and sales orders, helping sales teams track profitability in real time.

Configuration

To enable margins:

1. Go to Sales app ‣ Configuration ‣ Settings

2. In the Pricing section, enable Margins

3. Click Save

Info
Once enabled, margin calculations are automatically available across quotations and sales orders without additional setup.

Configure price and cost

To ensure accurate margin calculations, define both Sales Price and Cost for each product.

Go to: Sales app ‣ Products ‣ Products and update these fields in the General Information tab.

Tip
Always keep product costs updated (especially for frequently changing supplier prices) to avoid misleading margin calculations.

Example
If a product has:

• Cost = $50

• Sales Price = $80

Then:

• Margin = $30

• Margin (%) = 37.5%

Compute margins on sales orders

To view margins in action:

1. Go to Sales app ‣ Orders ‣ Quotations

2. Click New

3. Add products to the quotation

A Margin field automatically appears at the bottom, showing total profit and percentage.

To display margins per product line:

1. Click the (settings adjust) icon in Order Lines

2. Enable:

   • Margin

   • Margin (%)

Info
The margin per line is calculated based on product cost and selling price, multiplied by quantity.

Alert
Margin fields are read-only. To adjust margins, update the product’s Cost or Sales Price.

Margin calculation with a pricelist

Margins dynamically adjust when pricelists are applied.

Steps:

1. Go to Sales app ‣ Products ‣ Pricelists

2. Click New

3. Add pricing rules

4. Create a quotation

5. Apply the pricelist

6. Click Update Prices

Example
A seasonal discount scenario:

• Product: Blue denim jeans

• Discount: 5%

• Minimum quantity: 2

• Valid period: October to December

This reduces the selling price, which directly lowers the margin.

After applying changes:

Tip
Always click Update Prices after applying a pricelist to ensure margins are recalculated correctly.

Alert
Heavy discounts may significantly reduce or eliminate margins—review pricing strategies carefully.

Analyze margins

Margins can also be analyzed visually:

1. Go to Sales app ‣ Orders ‣ Quotations

2. Switch to Graph or Pivot view

3. Use Measures → Margin

Tip
Use pivot view to compare margins by:

• Customer

• Salesperson

• Product

This helps identify high-performing and low-performing areas.

Info
Margin analysis is especially useful for strategic decisions like pricing optimization, discount control, and product performance evaluation.