division different profit margin division profit departments different profit faq What if I Want a Different Profit Margin for One Department vs. Another (e.g. Maintenance vs. Install)

If you have 1 company budget, but a different target profit margin for your two divisions, you can do this in two ways.

Let's assume that you have a maintenance division and an install division.  You want to target 5% net profit for your maintenance estimates and 15% net profit for your install estimates.  Here's how to do it.

  1. The Long Way -
    1. you keep 1 budget and your set your net profit margin to either 5% or 15%. If most of your estimates are install estimates, you'd set your budget to 15% profit to minimize changes.
    2. When you do install estimates, it will automatically default to 15%. No action needed.
    3. When you do maintenance estimates, you'd set use the Set Profit button to override the profit to 5%.

     

  2. The Short Way.
      1. Make your company budget.  Call it the Install Budget. Set its net profit to 15%.

      2. Use the Copy button to copy this budget and create a new budget called Maintenance Budget

  3. On the Maintenance Budget, drop your sales goals until the budget's net profit margin is 5%
  4. Save your new budget (the Maintenance Budget)
  5. Now you have 2 budgets - one for estimating install, one for estimating maintenance. Let's setup the default budget for both divisions so you don't have to change anything when making an estimate
  6. Click the Estimates menu
  7. Click the Settings menu option
  8. Set the Default Standard Estimate Budget to your Install Budget
  9. Set the Default Service Estimate Budget to your Maintenance Budget
  10. Click Save to save changes
  11. NOTE: EACH USER MUST REPEAT STEPS 7 THROUGH 12, AS DEFAULT BUDGETS ARE SET ON A PER USER (not PER COMPANY) BASIS

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