> For the complete documentation index, see [llms.txt](https://docs.rishvi.co.uk/linnworks/llms.txt).
> Use it to discover all available pages before exploring further.
# Margins
The sales margin is the profit gained from the sale of a product or service after all the costs related to it have been accounted for.
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.