{"id":32866,"date":"2025-11-18T11:22:05","date_gmt":"2025-11-18T11:22:05","guid":{"rendered":"https:\/\/tenthplanet.in\/odoo\/?p=32866"},"modified":"2025-11-28T12:35:23","modified_gmt":"2025-11-28T12:35:23","slug":"validate-gkm-accurately-in-odoo-purchase-order","status":"publish","type":"post","link":"https:\/\/tenthplanet.in\/odoo\/product\/purchase\/validate-gkm-accurately-in-odoo-purchase-order\/","title":{"rendered":"How to Validate GKM% Accurately in Odoo Purchase Order"},"content":{"rendered":"\n

Gate Keeping Margin – GKM<\/strong><\/h2>\n\n\n\n

In business like distribution, FMCG, or retail, Gate Keeping Margin (GKM) is an additional margin percentage applied to products, customers, or vendors which control profitability. It essentially acts as a minimum acceptable profit threshold that must be maintained before a sale can be approved or processed.<\/p>\n\n\n\n

Purpose of Validating GKM% in a PO<\/strong><\/h2>\n\n\n\n

The GKM% validation ensures that the product’s profit margin meets the company\u2019s minimum acceptable threshold. This validation must be satisfied before the Purchase Order (PO) can be confirmed, safeguarding the company\u2019s profitability. It covers their costs and ensures they earn a margin on the product. It helps to determine pricing and maintain profitability across the distribution network.<\/p>\n\n\n\n

\"Odoo<\/figure>\n\n\n\n

Creating a Purchase Order<\/strong><\/h2>\n\n\n\n

To create a new Purchase Order, begin by clicking New<\/strong> to open a fresh PO form. Select the Vendor<\/strong> from whom the items will be purchased, then proceed to add the required Products<\/strong> to the order line. After entering the necessary details, save the Purchase Order. Once saved, the system automatically generates a unique PO document number<\/strong>, which appears directly on the order form and is also included in the printed version of the Purchase Order.<\/p>\n\n\n\n

Basic Cost Handling<\/strong><\/h2>\n\n\n\n

The Basic Cost<\/strong> is fetched automatically from the Product Master\u2019s Purchase tab.Manually change the Basic Cost field in the PO if required.When the basic cost is updated.The system recalculates the Mark-Up<\/strong> and Mark-Down<\/strong> values automatically.<\/p>\n\n\n\n

GKM% Validation Logic<\/strong><\/h2>\n\n\n\n

Gate keeping Margin % is directly Proportional to Mark down % .When Product A is purchased when GKM %=10 and Mark Down % = 9 then system shows the validation \u201cProduct margin 9.0 is less than GKM% 10.0 in Product A\u201d When the Markdown Percentage is less than the GKM Percentage, validation is triggered . Product margin is less than GKM% in ‘Product Name’.The user will not be able to proceed with confirming the PO unless the issue is resolved.<\/p>\n\n\n\n

\"Odoo<\/figure>\n\n\n\n

Proceeding with PO Confirmation<\/strong><\/h2>\n\n\n\n

When the Markdown Percentage is greater than or equal to the GKM Percentage, the system allows the user to proceed.The PO Confirmation can be completed successfully.No validation message is shown, and the system moves forward with the purchase order.This ensures the product margin meets the required threshold set by the company.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Gate Keeping Margin – GKM In business like distribution, FMCG, or retail, Gate Keeping Margin (GKM) is an additional margin […]<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[383],"tags":[474,449,459],"class_list":["post-32866","post","type-post","status-publish","format-standard","hentry","category-purchase","tag-gkm","tag-product","tag-purchase"],"acf":[],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/32866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/comments?post=32866"}],"version-history":[{"count":0,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/32866\/revisions"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/media?parent=32866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/categories?post=32866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/tags?post=32866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}