Work orders generated from an agreement roll up automatically into an Agreement Margin record: total revenue, total cost, margin, and margin % across all of the agreement's completed work orders. The Ten Least Profitable Agreements view puts the contracts that are losing money at the top.
See agreement margins
Go to Margin → Agreement Margins. Each record shows:
| Figure | How it is calculated |
|---|---|
| Revenue | Sum of work order revenue |
| Total Cost | Sum of (Labour Cost + Material Cost + Overhead − Warranty Recovery) |
| Margin | Revenue − Total Cost |
| Margin % | Margin ÷ Revenue × 100 |
Find the contracts losing money
Switch to the Ten Least Profitable Agreements view. It is sorted by margin with the lowest at the top, which is the fastest way to spot agreements to renegotiate or re-scope.
When agreement margins update
An agreement's totals are re-summed whenever one of its work orders' margins is calculated or recalculated. There is no nightly batch; the numbers are current as of the last work order completion or warranty change. See Read a work order's margin for what triggers a recalculation.
Currency
Work orders in different currencies under one agreement are aggregated using their base-currency amounts, converted with the exchange rates maintained in Dynamics 365 under Settings → Currencies.