What is 'order profit' in SAP SRD-FIN-COR - FIN-Cost and Revenue?

order profit - Overview

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: Profit that can potentially be earned based on sales orders, service orders, service contracts, and sales returns.

order profit - Details

• 
  Key Concepts: 
  Order profit is a term used in SAP's SRD-FIN-COR FIN-Cost and Revenue Accounting component. It is the difference between the total revenue generated from an order and the total cost associated with that order. It is a measure of the profitability of an order. 
  
  How to use it: 
  Order profit can be used to measure the profitability of an order. This can be done by calculating the total revenue generated from an order and subtracting the total cost associated with that order. The resulting number is the order profit. 
  
  Tips & Tricks: 
  It is important to consider all costs associated with an order when calculating its order profit. This includes direct costs such as materials, labor, and overhead, as well as indirect costs such as marketing and administrative expenses. 
  
  Related Information: 
  Order profit is related to other financial metrics such as gross margin, net margin, and return on investment (ROI). These metrics can be used to measure the overall profitability of a business or product line.