In Odoo 18, the Margins feature plays a crucial role in assessing the profitability of each sales order. By enabling the Margins option in the Configuration > Settings section of the Sales module, businesses can gain valuable insights into the difference between the sales prices and the cost of goods sold. This feature enables a detailed analysis of profit margins, which helps businesses assess the profitability of each order and product line.
Once the Margins option is enabled, users can easily track the total margin for the entire sales order. This figure is displayed within the sales order and provides a clear overview of the overall profitability of the sale.
Additionally, the margin for each individual product line is also visible, offering insights into the profitability of each item in the order. The margin for each order line is calculated as the difference between the sale price and the cost price of the product, helping businesses evaluate how much profit is being made on each product.
In addition to the margin amount, Odoo 18 also displays the margin percentage for each product line, giving businesses an easy way to gauge the profitability of individual products in relation to their sales price. This analysis is particularly useful for pricing strategies and decision-making, as it highlights which products are more profitable and which may require adjustments to pricing or cost structure.