How to Calculate MRP/WSP from Purchase Price?

In the software you have various method for price calculation, you can set the confriguation setting for rounding the value off or round to highest, lowest and nearest value, you can also set purchase price based on margin percentage on article or supplier.

Calculate Markup percentage for MRP/WSP from Purchase Price

Method to Round Up MRP/WSP

Calculate MRP/WSP from Purchase Price:

Markup on Purchase price can be defined from Article master and also at party master ( supplier and wholesaler) as follow:

Whether the MRP is fixed or calculated on purchase price based on Margin percentage : Whenever you want to specify the margin based on article wise then you can use article master to specify markup percentage. see this...
If Markup is define at party( supplier/wholesale) then it overwrite the specified price: Whenever the markup is defined into parties master it overwrites the specified price during purchase. see this...

Method to Round Up MRP/WSP:

Rounding will provide you to provide various configure setting like Rounding method, Rounding value and Rounding Mode.

Rounding Method :
There are three type of rounding Method:
a. No rounding
b. Rounding the multiple of rounding
c.Round to the end of rounding

Rounding Mode :
There are three type of rounding Method:
a. Normal-Round to nearest
b. Celing-Round to highest Value
c. Flooring-Round to lowest Value

Lets us take an example to understand the Rounding Methods.

Methods	No rounding	Rounding to the end of rounding value	Rounding to the multiple of rounding value
Rounding Calculation	In this case system will automatically generate the MRP/WSP price.	Suppose that you have selected Rounding Method as Rounding to the end of Rounding value. lets us take,Rounding Value = 99 Now, calculate MRP/WSP price from Purchase Price, Suppose Purchase Price : Rs.500 and Markup % : 25% then 25% of 500=> RS.625 But final price = RS.699 Now the question in your mind arise how this happens actually it takes the rounding value 99 in the end for calculation the actual value is 625 so it takes 699 to rounding the end of rounding value	Suppose that you have selected Rounding Method as Rounding to the multiple of rounding value. lets us take,Rounding Value=5 Now Suppose Purchase Price: Rs.1222 and Markup % = 25% then 25% of Rs.1222= Rs.1527.5 Now, see what will be answer for final value on MRP/WSP if we choose different Mode (ceiling, flooring and normal rounding).
Rounding Mode	Not Required.	Not required.	Case 1--- Ceiling:it rounds the higher value as rounding value is specified as 5 then it takes multiple of 5 means the value should be greater then 1527 and also that value will be multiple of 5 so, highest value then 1527 which is multiple of 5 is 1530 so it takes the value as 1530. Case 2--- Flooring :it rounds the lowest value as rounding value is specified as 5 then it takes multiple of 5 means the value should be lesser then 1527 and that value will be multiple of 5, So the smaller value then 1527 which is multiple of 5 is 1525 so it takes the value as 1525. Case 3--- No rounding :The system automatic generate the round off value, here nor celing and flooring will occur.

How to Calculate MRP/WSP from Purchase Price?

Was this information helpful ?

Yes No

Give us your comments / feedback on how to make this information even better:

Copyright © 2014 [zOrder Technologies Pvt. Ltd.]. All rights reserved.
Revised: 10/28/2014.

How to Calculate MRP/WSP from Purchase Price?

Was this information helpful ?

Yes No

Give us your comments / feedback on how to make this information even better:

Copyright © 2014 [zOrder Technologies Pvt. Ltd.]. All rights reserved. Revised: 10/28/2014.

Copyright © 2014 [zOrder Technologies Pvt. Ltd.]. All rights reserved.
Revised: 10/28/2014.