{"id":32867,"date":"2025-11-18T11:07:43","date_gmt":"2025-11-18T11:07:43","guid":{"rendered":"https:\/\/tenthplanet.in\/odoo\/?p=32867"},"modified":"2025-11-28T12:35:32","modified_gmt":"2025-11-28T12:35:32","slug":"calculate-product-pricing-fields-in-a-purchase-order-in-odoo","status":"publish","type":"post","link":"https:\/\/tenthplanet.in\/odoo\/product\/purchase\/calculate-product-pricing-fields-in-a-purchase-order-in-odoo\/","title":{"rendered":"How to Calculate Product Pricing Fields in a Purchase Order in Odoo"},"content":{"rendered":"\n

Purchase Order (PO)<\/strong> process to calculate product pricing<\/strong> with proper cost visibility, margin control, and profitability insights and apply target margin<\/strong> or markup<\/strong>. By applying the outlined formulas and principles, companies can achieve precise cost control and stronger profitability management.
It provides the clarity needed to support data-driven, margin-focused pricing strategies.<\/p>\n\n\n\n

Creating a Purchase Order<\/strong><\/h2>\n\n\n\n
    \n
  • Open the Purchase<\/strong> module and click the \u2018New<\/strong>\u2019 button to create a new RFQ.<\/li>\n\n\n\n
  • Select the vendor<\/strong>, and then choose the product<\/strong> based on the selected vendor from the respective field.<\/li>\n<\/ul>\n\n\n\n

    Product name and MRP<\/strong><\/h2>\n\n\n\n

    For example<\/p>\n\n\n\n

    Product :  [7979] WHISKAS ADULT OCEAN FISH FLV 50G\nMRP=\u20b9955  <\/code><\/pre>\n\n\n\n
    How to Calculate MRP (Tax Excl.)<\/strong><\/h2>\n\n\n\n
    The Maximum Retail Price (MRP)<\/strong> (TaxExcl). shown does not include any tax<\/strong>.<\/p>\n\n\n\n
    Formula<\/p>\n\n\n\n
    MRP (Tax Excl.) = MRP \/ (1 + Tax Percentage)<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 MRP = \u20b9955  \n    \u2022 Tax Rate = 12% (i.e., 1.12), MRP(Tax Excl.) =955 \/ 1.12= 852.68<\/code><\/pre>\n\n\n\n
    MRP excluding tax is \u20b9852.68.<\/p>\n\n\n\n
    Unit Value when Discount is Not Applied<\/strong><\/h2>\n\n\n\n
    When no discount is applied, the unit value displayed will be the basic cost.<\/p>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Unit Value= Basic Cost- Discount Percentage<\/code><\/pre>\n\n\n\n
    Note:<\/strong> If the Discount is 0, the total discount amount will show be 0.<\/p>\n\n\n\n
    How to Calculate Tax Exclusive Value<\/strong><\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Tax Excl.=Unit Value * Quantity<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Unit Value= 609.3360 \n    \u2022 Quantity =10\n    \u2022 Tax Excl.= 609.3360 *10 = 6093.36<\/code><\/pre>\n\n\n\n
    Tax excluding is \u20b9 6093.36<\/p>\n\n\n\n
    How to Calculate Net Cost<\/strong><\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Net Cost = Unit Value+Tax Percentage<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Unit Value = \u20b9609.3360\n    \u2022 Tax =12 % \n    \u2022 Net Cost =609.3360+12%=682.45632<\/code><\/pre>\n\n\n\n
    Net Cost is \u20b9 682.45632<\/p>\n\n\n\n
    How to Calculate Tax Inclusive Value<\/strong><\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Tax <\/strong>Incl. = (Unit Value + Tax Percentage) \u00d7 Quantity<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
    Unit Value = 609.3360\n\nTax Rate = 12%\n\nQuantity = 10\n\nTax Incl.= (609.3360+12%)*10=6824.5632<\/code><\/pre>\n\n\n\n
    Tax Inclusive is \u20b9 6824.56<\/p>\n\n\n\n
    How to Calculate Total Basic Cost<\/strong><\/h2>\n\n\n\n
    The Total Basic cost calculated based on basic of the unit price of the product multiplied by the purchase quantity.<\/p>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Total Basic Cost = SUM(Basic Cost * Quantity)<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Line 1: Basic Cost = 609.3360, Quantity = 10\n    \u2022 Line 2: Basic Cost = 533.89, Quantity = 15\n    \u2022 Total Basic Cost=(609.3360\u00d710) + (533.89\u00d715) = 14101.71<\/code><\/pre>\n\n\n\n
    Total Basic Cost is \u20b914101.71<\/p>\n\n\n\n
    How to Calculate Total Discount<\/strong><\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Total Discount = SUM(Total Discount)<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Line 1: Total Discount = 0\n    \u2022 Line 2: Total Discount =0\n    \u2022 TotalBasic Cost = 0 + 0 = 0<\/code><\/pre>\n\n\n\n
    Total Discount is \u20b90<\/p>\n\n\n\n
    How to Calculate Taxable Amount<\/strong><\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    TaxableAmount=TotalBasicCost\u2212Total Discount<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Total Basic Cost = 14101.71\n    \u2022 Total Discount = 0\n    \u2022 TaxableAmount=14101.71 \u2212 0 = 1410<\/code><\/pre>\n\n\n\n
    Taxable amount is \u20b914101.71<\/p>\n\n\n\n
    How to Calculate Total<\/h2>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Total=TaxableAmount+TaxAmount<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 Taxable Amount = 14101.71\n    \u2022 SGST = 846.10\n    \u2022 CGST = 846.10\n    \u2022 Total = 14101.71 + (846.10 + 846.10) = 15793.91<\/code><\/pre>\n\n\n\n
    Total is \u20b915793.91<\/p>\n\n\n\n
    \"Odoo<\/figure>\n\n\n\n
    How Mark Down % and Mark Up % are Calculated in Purchase Orders in Odoo<\/strong><\/h2>\n\n\n\n
    Mark Down% Calculation<\/strong><\/h3>\n\n\n\n
    Formula<\/strong><\/p>\n\n\n\n
    Mark Down% = ((MRP (Taxable) - Unit Value) \/ MRP (Taxable)) * 100<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 MRP (Taxable) = \u20b93,154.2400\n    \u2022 Unit Value = \u20b92407.6300\n    \u2022 Mark Down % = ((3154.2400-2407.6300) \/ 3154.2400) * 100 =  23.67<\/code><\/pre>\n\n\n\n
    Mard Down% is 23.67<\/p>\n\n\n\n
    Mark Up % Calculation<\/strong><\/h3>\n\n\n\n
    Formula<\/p>\n\n\n\n
    Mark Up% = ((MRP (Taxable) - Unit Value) \/ Unit Value) * 100<\/code><\/pre>\n\n\n\n
    For Example<\/p>\n\n\n\n
        \u2022 MRP (Taxable) = \u20b93,154.2400\n    \u2022 Unit Value = \u20b92407.6300\n    \u2022 Mark Up % = ((3154.24-2407.6300) \/ 2407.6300) * 100  =31.01<\/code><\/pre>\n\n\n\n
    Mark Up% is 31.01<\/p>\n\n\n\n
    Change in Margin%<\/strong><\/h3>\n\n\n\n
    Check the previous Purchase Order Mark Up %<\/strong> or Mark Down %.<\/strong><\/p>\n\n\n\n
    Note: When the current Purchase Order Mark Up % or Mark Down % has increased<\/strong>, the change in margin % is shown as positive<\/strong>. Otherwise, if the Mark Up % or Mark Down % has decreased<\/strong>, the change in margin % is shown as negative<\/strong>.<\/p>\n\n\n\n
    \"Odoo<\/figure>\n","protected":false},"excerpt":{"rendered":"
    Purchase Order (PO) process to calculate product pricing with proper cost visibility, margin control, and profitability insights and apply target […]<\/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":[448,507,506,471],"class_list":["post-32867","post","type-post","status-publish","format-standard","hentry","category-purchase","tag-costing-calculation","tag-markdown","tag-markup","tag-purchase-order"],"acf":[],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/32867","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=32867"}],"version-history":[{"count":0,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/32867\/revisions"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/media?parent=32867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/categories?post=32867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/tags?post=32867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}