About setting up profit calculation
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
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 factor – Value-added amount ÷ hour costs
Value-added ratio – Value-added amount x 100 ÷ revenue
Value-added markup percentage – Value-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 factor – Gross margin ÷ total costs
Contribution ratio – Gross margin x 100 ÷ revenue
Markup percentage – Gross margin x 100 ÷ total costs