GPMC FAQ

GPMC - Gross Profit Margin Calculator v1.3

Frequently Asked Questions

1 - How do I get GPMC to use a different default profit margin percentage?

2 - I'm getting a " " is not a valid floating point value. error message.

3 - How exactly does GPMC do its tax calculations?

4 - What is the largest amount GPMC can calculate?

5 - Can GPMC be set up to use Cost Plus instead of Profit Margin?

6 - Why are the lower check boxes not visible?

1 - How do I get GPMC to use a different default profit margin

percentage?

For version 1.12 and above click the profit margin percent label next to the

Profit Margin: field.

For all previous versions:

To get GPMC to startup using your desired gross profit margin percentage and a

COGS Amount of 0.00 simply enter a COGS amount and press enter to enter

the Profit Margin: field. Enter your desired margin percentage and press the enter

key three times to return to the COGS Amount field. Press the delete key to

zero out the current COGS Amount. Left click the Save On Exit check box and

then exit GPMC. The next time you start GPMC it will use the profit margin

you just entered.

2 - I'm getting a " " is not a valid floating point value. error message.

Entering non numeric characters or multiple decimal places in the COGS Amount

field will generate this error message. To remove the offending character from the

COGS Amount field simply highlight the character and press the delete key to

remove it.

3 - How exactly does GPMC do its tax calculations?

GPMC uses a Dual Tax Table for tax calculations with three possible

tax calculations when both taxes are used.

Pre Tax Amount:

When using Pre Tax Amount the taxes are calculated independently from

each other on the Sub Total and then added to the Sub Total to get the

Resale Total.

Tax 1 = 0.10 10%

Tax 2 = 0.07 7%

Sub Total = 100.00

100.00 x 0.10 = 10.00

100.00 x 0.07 = 7.00

-------------------------------

Resale Total = 117.00

Tax 1 on Tax 2:

When using Tax 1 on Tax 2 the taxes are calculated using a compounded

tax formula. This is basically tax on tax. For you horrified Americans it's a

Canadian thing In Canada it is somehow deemed legal and justifiable in some

provinces to do this. Using this method they manage to come up with mystery

money. In the example below what appears on the surface to be 17% sales tax

is in fact 17.7%

Here's how it's done.

Tax 1 = 0.10 10%

Tax 2 = 0.07 7%

Sub Total = 100.00

100.00 x 0.10 = 10.00

Sub Total = 110.00

110.00 x 0.07 = 7.70

-------------------------------

Resale Total = 117.70

Tax 2 on Tax 1:

Same as above. Bottom line is the Resale Total remains the same

however the other Governmental agency receives the mystery money.

Tax 1 = 0.10 10%

Tax 2 = 0.07 7%

Sub Total = 100.00

100.00 x 0.07 = 7.00

Sub Total = 107.00

107.00 x 0.10 = 10.70

-------------------------------

Resale Total = 117.70

Tax 1 only:

If the sales tax in your area is calculated using a single tax simply set the

tax 2 %: field to 0.00 and give it a name of Unused and select the

Pre Tax Amount option.

Tax 1 = 0.15 15%

Sub Total = 100.00

100.00 x 0.15 = 15.00

-------------------------------

Resale Total = 115.00

Calculate Tax Using:

The Taxation Table also allows you to disable one of the predefined taxes should

you require to do so for some tax calculations. For example 90% of the time you

require both taxes, the other 10% of the time a tax exception of one of the taxes

may be necessary.

Both Taxes

Tax 1 only

Tax 2 only

NOTE: To disable both taxes simple uncheck the Calculate Taxes option

4 - What is the largest amount GPMC can calculate?

The largest COGS amount possible is 800,000,000,000,000.00 (800 Trillion).

However this number will decreased based on the Gross Profit Margin.

For every 1% of desired Gross Profit Margin the amount will be reduced by

8,000,000,000,000.00 (8 Trillion).

For example, with a GPM of 20% the largest amount possible is 640 Trillion.

5 - Can GPMC be setup to use Cost Plus instead of Profit Margin?

For version 1.22 and above Cost Plus Markup can now be configured in

the 'Profit Margin Configuration' dialog window by left clicking the Cost

Plus Markup percentage display to the right of the 'Resale Total'

field. See below for all previous versions.

Yes and no, GPMC is after all a Gross Profit Margin Calculator. With this

in mind what you have to do is figure out what the actual profit margin is on

the cost plus percentage you want to use. GPMC can help you figure this out.

Start GPMC and enter a COGS Amount of 100.00 then change the Resale

Total or the Sub Total (when the Calculate Taxes option is checked) to the

amount that a 100.00 equates to using your cost plus percentage and GPMC

will calculate the profit margin for you. To keep this profit margin for future

calculations zero out the COGS Amount field and select Save On Exit.

COGS Amount: 100.00

Profit Margin: 0.2593 (25.93%)

Resale Total: 135.00 (Cost Plus 35%)

6 - Why are the lower check boxes not visible?

Your Windows video settings are setup to use Large Fonts as

opposed to the default of Small Fonts. The next release will

correct this problem.

Got a question this FAQ doesn't answer?

Send any questions or comments to the address below.

support@microtask.ca