What is pocket margin in SAP CEC-MKT-ISG - Insight?

SAP Term: pocket margin

• Component: CEC-MKT-ISG

• Component Name: Insight

• Description: The measure of the profitability of a customer determined after considering costs of goods sold and direct costs attributed to the relationship with the customer.

Smart SAP Assistant

• Key Concepts: 
  Pocket margin is a term used in the CEC-MKT-ISG Insight component of SAP software. It is a measure of the profitability of a product or service, calculated by subtracting the cost of goods sold from the selling price. It is also known as gross margin or gross profit.
  
  How to use it: 
  Pocket margin can be used to measure the profitability of a product or service. To calculate pocket margin, subtract the cost of goods sold from the selling price. This will give you the pocket margin for that product or service.
  
  Tips & Tricks: 
  When calculating pocket margin, make sure to include all costs associated with producing and selling the product or service. This includes labor costs, overhead costs, and any other costs associated with producing and selling the product or service.
  
  Related Information: 
  Pocket margin is related to other measures of profitability such as net profit and operating profit. Net profit is calculated by subtracting all expenses from revenue, while operating profit is calculated by subtracting all operating expenses from revenue.