When a work order's System Status changes to Completed, Job Margin 365 sums its cost entries, applies one overhead rule and any qualifying warranty recovery, and writes a Work Order Margin record. The work order itself also shows Margin and Margin %, so you can sort and filter work order lists by profitability.
What the record shows
| Figure | How it is calculated |
|---|---|
| Revenue | Sum of revenue across all cost entries |
| Labour Cost | Sum of extended cost across Labour entries, including burden |
| Material Cost | Sum of extended cost across Part, Expense, and Subcontractor entries |
| Overhead | From the one matching overhead rule, or zero |
| Warranty Recovery | Sum of qualifying warranty claims |
| Margin | Revenue − (Labour Cost + Material Cost + Overhead − Warranty Recovery) |
| Margin % | Margin ÷ Revenue × 100, rounded to two decimals; 0 when Revenue is 0 |
A negative margin is a loss.
The margin waterfall
Open the Work Order Margin, or the work order's Job Margin form, to see the waterfall: a bar chart that starts at revenue, steps down through labor, material, and overhead, steps back up for any warranty recovery, and lands on the margin.
Worked example
| Component | Amount |
|---|---|
| Revenue | 760.00 |
| Labour Cost | −384.00 |
| Material Cost | −0.00 |
| Overhead | −38.40 |
| Warranty Recovery | +100.00 |
| Margin | 437.60 |
Margin % = 437.60 ÷ 760 × 100 = 57.58%.
When a margin is calculated or recalculated
- Calculated when the work order's System Status changes to Completed. Costs are frozen at that moment, and the record's Frozen On shows when.
- Recalculated when a warranty claim on that completed work order is created, or its Status, Recoverable Amount, or Work Order changes.
- Not recalculated when cost entries are added or changed after completion. To pick those up, re-complete the work order: change its System Status away from Completed and back again. The margin is recomputed from scratch.
Every recalculation also updates the agreement margin for the work order's agreement, if it has one.
Currency
A work order's margin is computed in the work order's currency. Every Job Margin record on that work order inherits the same currency.