Margin and markup show the difference between the buy and sell prices of your supplies. They always involve three items that never change: sell price or retail price, cost, and profit.

Both margin and markup are shown as percentages wherein the margin shows your income while the markup shows your costs.

To understand the difference between markup and margin, please refer to the following calculations.

Your markup is always bigger than your margin, even though they refer to exactly the same amount of money.

• Markup is how much you increase the price of the items you sell.
  
• Margin is what percentage of income is gross profit.

Job Supply

Using the same example of an item with a buy price of $150 and a sell price of $200, refer to the following image which shows how it looks like in the Ascora supply details screen.

     a. Cost - is your buy price

     b. Markup - this is your markup that you can adjust manually

     c. Charge Ex Tax - is your sell price

Note: If you adjust your item cost price or Charge Ex Tax (sell price), markup is automatically recalculated.

Job Profitability

Using the same example, our Job Profitability will show exactly the same calculation as shown in the image below.

     a. Total Value Ex Tax represents the supply item that we sell at $200. If you have multiple supplies and use Time & Materials pricing method, this will always be the total of all combined supply sell prices.

     b. Total Supplies Cost represents the supply item that we buy at $150. If you have multiple supplies and use Time & Materials pricing method, this will always be the total of all combined supply buy prices. 

     c. Actual Profit Margin is calculated as sell price minus buy price divided by sell price = $25%.