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Configure and respond to margin threshold warnings

Margin threshold warnings help you identify rental Product lines that may not be achieving your desired profit margin. OnRent Go checks each eligible line against the configured margin levels.

These warnings are advisory: they do not enforce a minimum price or prevent an Order from being saved or confirmed.

Before You Start

  • You need permission to amend the relevant Product Group or Product.

  • Users reviewing the margin column and saved Order notifications need the View Order Cost Margin permission.

  • Margin warnings apply to eligible rental Product lines that are not marked as zero-priced. They do not generally apply to sale or service lines.

Configure the Margin Levels

Set the Product Group defaults

  1. Go to System Setup › Product Groups.

  2. Select the required Product Group.

  3. Select Amend.

  4. Enter the required Minimum Margin %.

  5. Enter the required Warning Threshold %.

  6. Save the Product Group.

The Warning Threshold should normally be higher than the Minimum Margin, so users receive an early warning before the minimum is reached.

Override an individual Product

  1. Go to Products & Services › Products.

  2. Select the required Product.

  3. Select Amend.

  4. Open Pricing.

  5. Leave the margin values blank to inherit them from the Product Group, or enter Product-specific values.

  6. Save the Product.

At Product Group level, a value of 0 means that threshold is not being monitored.

Understand the Warning Levels

Line margin

Result

At or above the Warning Threshold

No margin warning

Below the Warning Threshold but at or above the Minimum Margin

Margin Warning

Below the Minimum Margin

Margin Below Minimum

For example, with a Warning Threshold of 30% and a Minimum Margin of 20%, a line at 25% displays a Margin Warning, while a line at 15% displays Margin Below Minimum.

Review a Warning on an Order

  1. Go to Rental & Sales Orders › Rental Orders.

  2. Create a new Order or open an existing one.

  3. Add the required rental Product.

  4. Enter the rate, price and any discount.

  5. Save the line.

  6. Review the affected line and any margin notification shown on the Order.

The Order notification identifies how many lines are affected - it does not represent the overall Order margin.

Review the affected line's rate and customer price, discount, quantity and charging period, supplier or internal cost, and margin percentage.

Correct any inaccurate price or cost information. Where the values are correct, either adjust the commercial offer or follow your organisation's approval process for an authorised low-margin exception.

Save the changes and confirm that the line warning and Order notification update as expected.

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