Gross Margin
Gross margin is revenue less the direct cost assigned to that revenue. A useful margin view depends on consistent product costs, discounts, returns and timing.
A worked example
A practical example to make the concept clear.
| Step | Illustrative record and result |
|---|---|
| Starting record | Example net sales revenue: 100,000 IQD after discounts, excluding tax. |
| Change or calculation | Direct cost assigned to the same sale: 70,000 IQD. Gross profit amount: 100,000 − 70,000 = 30,000 IQD. |
| Meaning and exception | Gross margin percentage: 30,000 ÷ 100,000 × 100 = 30%. It is not markup on cost or net profit after operating expenses. |
Why it matters
Compare a quoted margin with the margin after delivery and invoice. Do not rely on a dashboard until finance validates cost allocation and source records; no Datrylo margin outcome is promised here.
Make it practical
Does the reported margin account for discounts, returns and actual product cost? Test the answer with the exact release and application package under consideration. Explore Datrylo applications.