Define the components in the Profitability Analysis report

Related topics

The following describes how to select the components that will be used to calculate the profitability values for Items and/or Customers. The calculation of profitability values is optional, but if you choose to do so the advantage is the following:

You will be able to view the cumulative contribution and cumulative contribution percentage for the item or customer as well as the ranking code.
You will be able to update the DC1 Item and/or Customer files with these values allowing you to then view this information in DC1 Analyser (via the Item/Customer Browsers) at any time, without having to run a report.

Note: This calculation function will only work if the following was previously defined:

Profitability limits (ranking) for Items and/or Customers via the Manage Item Profitability codes/Manage customer profitability codes menu items. (See Classify the limits for an item’s profitability and Classify the limits for a customer’s profitability).
The first key sequence for the report is Customer or Item.

To define these components do as follows:

Select the Manage PA definitions menu item and open the applicable definition (if this has not already been done)
Toggle to the Profitability page and define the Profitability calculation components in the following fields:

Calculation base: The calculation base component is used to calculate profit percentage by comparing the value of the Net contribution component with the value of the Calculation base component. Click on the arrow to pull down a list where you can select from any Calculation components, Columns or Balance components to be used as the Calculation base.
Net contribution: The net contribution component is used to set the net contribution on the Customer or Item.; Note: If you defined one of the columns as the Net contribution column on the Columns page (by ticking the Is Net contribution box) in that column, the applicable component for that column is updated in this field.; Note: If you did not previously define a column as the Net contribution column on the Columns page, click the arrow to pull down a list where you can select from any Calculation components, Columns or Balance components to be used as the Net contribution component. If you select a Column component the system will prompt you with a window asking if you want to automatically add the three additional contribution columns to the report after this column. If you answer Yes, these columns will automatically be added on the Columns page. If you answer No, you can manually add the applicable Contribution columns (see Manual creation via this Columns page for instructions). In both cases, however, the applicable column will be updated as the Net contribution column on the Columns page.

After defining this information, the following three extra columns will be added (if you let the system automatically create them) or could be added (by doing it manually) and displayed on the report:

Cumulative contribution
Cumulative contribution %
Suggested profitability code: The ranking code you defined for the limits

Once the values are created, you can back update the Item file and/or Customer file in DC1 with this information. You will then be able to view these values, at any time, in the Item and Customer Browsers within DC1 Analyser without having to run a report. See Update profitability values for item/customer in DC1 and View profitability details for instructions.

When all information for the report you are building is complete, you can create the report. See Create the Profitability Analysis report for instructions.

Note: The behaviour of the windows and the way in which you want to view the information, when viewing the output, depends on the report settings you may have previously defined. You can define or change these settings both before and after the report has been created. See About report settings for Profitability Analysis reports.