What is Profitability: Gross Profit Margin Earned in SAP SRD-FIN-ACC - FIN-Financial Accounting?

SAP Term: Profitability: Gross Profit Margin Earned

• Component: SRD-FIN-ACC

• Component Name: FIN-Financial Accounting

• Description: A key performance indicator KPI that shows the profit a company makes in relation to the Cost of Goods Sold CoGS. Earned means that gross profit and net revenue which are used to be calculated gross profit margin are relevant for the income statement. This KPI shows the profitability ratio calculated as Gross Profit - Earned as a percentage of Net Revenue - Earned.

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• Key Concepts: 
  Profitability Gross Profit Margin Earned is a measure of the profitability of a company. It is calculated by subtracting the cost of goods sold from the total revenue and then dividing the result by the total revenue. This calculation gives an indication of how much profit a company is making from its sales. 
  
  How to use it: 
  In SAP Financial Accounting, Profitability Gross Profit Margin Earned can be used to measure the profitability of a company. This calculation can be done by accessing the Financial Accounting module and entering the relevant data. The calculation will then be displayed in a graphical format, allowing users to easily compare different periods and identify trends in profitability. 
  
  Tips & Tricks: 
  When using Profitability Gross Profit Margin Earned in SAP Financial Accounting, it is important to ensure that all relevant data is entered accurately. This will ensure that the calculation is accurate and that any trends or changes in profitability can be identified quickly and easily. 
  
  Related Information: 
  Profitability Gross Profit Margin Earned is just one measure of profitability that can be used in SAP Financial Accounting. Other measures include Return on Investment (ROI), Return on Equity (ROE), and Operating Profit Margin (OPM). All of these measures can be used to gain insight into the financial performance of a company.