Margin Pricing

Margin is a numerical representation of profitability. As a percentage, margins are calculated as:

[(Price - Total Cost) / Price] x 100

This margin calculation helps track profitability at various levels of the manufacturing process, from individual Parts to entire Work Orders.

• Price is typically the contract total direct price or Invoice total direct price.
• Total Cost includes several components:
  • Labor Cost (part labor cost)
  • Station Labor Cost
  • Station Operation Cost
  • Inventory Cost
  • Outsourcing Cost

Viewing Margins

The margins are multiplied by 100 to be viewed as a percentage. The margin is displayed with color coding:

• Positive margins (> 0%) are shown in green.
• Negative margins (≤ 0%) are shown in red.
  

If the margin value isn't a percentage:

• "TBD" is shown when price is not yet determined.
• "N/A" is shown when margin cannot be calculated.

There are various levels of margins used in Steelhead:

• Work Order Margin
• Sales Order Margin
• Part Number Margin

For information on Station Labor and Station Operation rates, see also "Station Pages" article.

Videos

Job Costing in Steelhead
Job Costing Masterclass
Job Costing and Margins in Steelhead
Redline Job Costing in Steelhead

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