What is basic margin decomposition in SAP CEC-MKT-ISG - Insight?

SAP Term: basic margin decomposition

• Component: CEC-MKT-ISG

• Component Name: Insight

• Description: A graphic or tabular representation of how the gross margin is reached for all invoices of the customers. Starting from the gross revenue, it shows how different discounts, surcharges, or costs contribute to the gross margin.

Smart SAP Assistant

• Key Concepts:
  Basic margin decomposition is a feature of the CEC-MKT-ISG Insight component of SAP software. It is used to analyze the profitability of a company’s products and services by breaking down the gross margin into its components. This allows companies to identify areas where they can improve their profitability and make better decisions about pricing and product mix.
  
  How to use it:
  Basic margin decomposition can be used to analyze the profitability of a company’s products and services. It breaks down the gross margin into its components, such as cost of goods sold, overhead costs, and other expenses. This allows companies to identify areas where they can improve their profitability and make better decisions about pricing and product mix.
  
  Tips & Tricks:
  When using basic margin decomposition, it is important to consider all of the components that make up the gross margin. This includes cost of goods sold, overhead costs, and other expenses. Additionally, it is important to consider the impact of changes in pricing or product mix on overall profitability.
  
  Related Information:
  The CEC-MKT-ISG Insight component of SAP software also includes features such as customer segmentation, product portfolio analysis, and market share analysis. These features can be used in conjunction with basic margin decomposition to gain a more comprehensive understanding of a company’s profitability.