Calculating Gross Profit Margin (GPM)

Let's recollect all the steps that have been done to make the GPM calculation possible:

1. Create ingredients.
2. Create recipe items and select the base ingredients for them.
3. Create vendors.
4. Create price book items (bulk items) and link them to the proper ingredients.
5. Create the store invoices.

Once all the steps are done, you can see the GPM calculation for the recipe items.

The formula to GPM calculation is as follows:

GPM = (Retail Price - Cost Price)/Retail Price*100%

GPM will be recalculated as soon as you change one of the following parameters:

• Recipe price
• Add or remove the base ingredients
• Change the portion size of the base ingredients