What is 'pocket margin' in SAP CRM-BTX - Business Transactions?

pocket margin - Overview

• Component: CRM-BTX

• Component Name: Business Transactions

• Description: A measure of the profitability of a transaction determined after subtracting direct product costs and other costs attributed to a customer from the pocket price.

pocket margin - Details

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  Key Concepts: 
  Pocket margin is a term used in the CRM-BTX Business Transactions component of SAP. It is a measure of the difference between the price of a product or service and the cost of providing it. It is used to determine the profitability of a product or service.
  
  How to use it: 
  Pocket margin can be used to analyze the profitability of a product or service. It can be calculated by subtracting the cost of providing the product or service from its price. This calculation can be used to determine whether a product or service is profitable and if adjustments need to be made in order to increase profitability.
  
  Tips & Tricks: 
  It is important to consider other factors when calculating pocket margin, such as overhead costs, taxes, and other expenses associated with providing the product or service. Additionally, it is important to consider market conditions when determining the price of a product or service in order to maximize profitability.
  
  Related Information: 
  Pocket margin is related to other financial metrics such as gross margin and net margin. Gross margin is the difference between revenue and cost of goods sold, while net margin is the difference between revenue and all expenses associated with providing a product or service.