Set a Sales Margin for a Sale Order in Odoo 16

February 21, 2023

Sales Margin can be defined as the total profit gained by a company through product sales or services. In short, sales margin is the difference between product cost price and product sale price.

Growth is the primary focus of sales margin management. The calculation of sales margin plays a vital role in the success of a business. Factors such as the total cost for a product, such as manufacturing, advertising, salaries, other materials, transportation expenses, etc can determine the sales margin.

In certain cases, we cannot fix a single sales margin for the products. In such situations, the user analyzes total expense through a scientific mechanism and gains a sales price. But with the help of Odoo ERP, you can quickly take care of sales price, profit, and other operations in a very convenient way.

Here we will discuss how to set a sales margin for a sale order in Odoo 16.

In order to use the ‘Sales Margin’ feature, first, we will have to enable this feature. In order to do this, go through the following steps –

Sales → Configuration – Settings → Pricing → Activate ‘Margins’ → Click on ‘Save’ button


Next, we can look into the use and functionality of this feature. For this, we will create a Sale Quotation/Order and analyze the ‘Margin’.

In order to create a Sale Quotation/Order, go through the following steps –

Sales → Orders → Quotations → Click on the ‘Create’ button



Enter all the required details in the form view such as Customer, Invoice and Delivery Address, Payment Terms, etc.

create-new- sale-orders

In order to add a product to the Sale Order, click on the ‘Add a Product’ option inside the ‘Order Lines’ tab.

Select the required product. In the image shown below, we have selected ‘Silver Chair’ as the product.


To get the full details of the product from the current view, we can click on the ‘External link’ present near the Product’s name, as shown above. This will redirect to the Product Details page as shown in the below image.


Here, we can see that the Sales Price =$14 and the Cost =$11. This means that there,

                                                 Sale Margin = (Sale Price – Cost) * Total Units of Product

                                                                                     = ($14 – $11) * 1 = $3

This margin gets automatically updated at the right end of the Order lines tab in the Sales Orders window,

After entering all the required details and products, we can validate the order by clicking on the ‘Confirm’ button.

The quotation state changes from ‘Quotation’ to ‘Sales Order’ and a corresponding ‘Delivery Order’ is also created.

The above method helps you to analyze the Sales Margin associated with individual Sale Quotations or Sale orders in Odoo.

In order to analyze the overall Sales Margin of the company’s overall Sale Activities, Odoo’s Reporting feature is highly helpful. You can also get an overall view of the Sales Activities by clicking on the ‘Graphical Representation’ of the Odoo ‘Sale Order’.

odoo-sale-order-represenationIn the graphical representation, X-axis shows the customer details and Y-axis contains the Total Cost of each customer. We can apply different measures/criteria to the graph by clicking on the ‘Measures’  button.

odoo-sale-order-overviewHere, we can view measures such as Untaxed amount, Taxes, Margin, Currency Rate, etc. By selecting the Margin option under the ‘Measures’ button, the respective result is accessible in the graph, as shown in the image below.


Each customer’s margin rate can be analyzed here.

In this way, the Sales Analysis of your company can be highly simplified and can be of immense help to analyze the business more efficiently.


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