Item Markup / Markdown Settings – Overview  

The Item Markup & Markdown Settings feature in Gofrugal HQ (ServEasy HQ) enables businesses to automate and standardize pricing strategies across items and categories.

This feature helps you define how the selling price should be calculated based on:

• Purchase Price

• Landing Cost

• MRP

Instead of manually calculating the selling price for every item, the system applies predefined rules automatically.

What You Can Do with This Feature  

1. Define Markup / Markdown Rules  

You can configure pricing rules using:

• Percentage-based markup/markdown

• Fixed amount-based markup/markdown

Example:

• Add 20% markup on purchase price

• Reduce ₹10 as markdown from MRP

2. Apply Rules to Specific Categories  

You can target specific:

• Categories

• Brands

• Suppliers

• Item groups

This allows customized pricing strategies for different product lines.

3. Automate Selling Price Calculation  

Once rules are defined:

• Selling price is calculated automatically during purchase entry

• Manual price calculation is eliminated

• Profit margins are controlled and standardized

Real-Life Business Scenario  

Consider a supplier entering a purchase with 50+ items.
Calculating the selling price manually for each item can be time-consuming and error-prone.

With Markup / Markdown Settings:

• The system automatically calculates the selling price

• No need for manual calculations

• Better control over profit margins

• Reduced risk of pricing errors

Key Advantages  

• Saves time during purchase entry

• Ensures consistent pricing strategy

• Prevents accidental selling below cost

• Improves profit tracking

• Reduces human errors

Next Step  

Now, let's see how to configure Item Markup / Markdown Settings in ServEasy HQ, step by step.

1. Navigate to MDM > Item Master Management > Item Markup Markdown Settings.

2. Select the Class Type as Default to apply the standard markup/markdown configuration.

3. Select the required Supplier from the list to apply the markup/markdown rule.

4. Select the required Round-Off option from the list.

In most cases, it is recommended to choose Near.

Available options:

• Near – Rounds the value to the nearest amount

• Lower – Rounds down to the lower value

• Upper – Rounds up to the higher value

• None – No rounding will be applied

Choose the option that best aligns with your pricing strategy.

5. Enter the Round-Off Value as 1.

Here, 1 denotes ₹1, meaning the system will round the calculated selling price to the nearest ₹1 based on the selected round-off option.

6. The first Category Name will be auto-populated (in this case, Product Type).

Select the required Product Type from the list.

Note: This acts as a filter, allowing you to select specific items from the item list to which the markup/markdown rule will be applied.

7. Select the required filtered item option from the Items drop-down menu to proceed with the markup/markdown configuration.

Note: If you do not apply any item filter, the system will display all items mapped to the selected supplier in the item list.

Note: In this example, three items have been selected without applying any filters.

8. After selecting the required items, click the Apply Filter button to load them for markup/markdown configuration.

Note: If you click the Other Categories link, a list of all available Category Names in HQ will be displayed, allowing you to filter and select items more precisely.

9. Select the required Mark Up / Down option from the list. Below are the available options and their purpose:

Available Mark Up / Down Options  

• Markup Selling
  Used to calculate the Selling Price based on:

• Purchase Price

• Landing Cost

• Landing Cost (Excluding Discount)

• Markdown Selling
  Used to calculate the Selling Price based on MRP.

• Markup Selling and MRP
  Used to calculate both the Selling Price and MRP based on:

• Purchase Price

• Landing Cost

• Landing Cost (Excluding Discount)

• Markdown Selling and Cost
  Used to calculate both the Selling Price and Cost based on MRP.

• Markdown Cost
  Used to calculate the Cost Price based on MRP.

Choose the appropriate option depending on your pricing strategy and whether you want to update Selling Price, MRP, Cost, or a combination of these fields.

10. Select the required options under Selling Based On and MRP/Cost Based On, then enter the corresponding values as per your pricing strategy.

For example:

• Choose whether the calculation should be based on Purchase Price, Landing Cost, or MRP

• Enter the required percentage or fixed value for markup/markdown

Ensure the values entered align with your defined pricing policy before proceeding.

11. Enter the required values for the selected Markup/Markdown configuration (percentage or fixed amount), as per your pricing requirement.

Ensure the values are verified before proceeding to apply the rule.

12. Complete all the required fields in the configuration and verify the details.

13. Click the Save button to store the Markup/Markdown settings.

If all selected items follow the same markup/markdown configuration, you can apply the same settings across all columns in a single action instead of updating each item individually.

This helps in:

• Ensuring uniform pricing logic

• Reducing repetitive manual entries

• Saving time during bulk configuration

1. First, load the required items and then click the Copy icon located on the right side of the items to replicate the settings across them.

Note: If you want to remove any item from the list, click the X (Delete) icon located on the right side of the respective item.

2. To copy the first item’s configuration to all items:

1. Select All Columns.

2. Click the Accept button.

This will apply the same markup/markdown settings to all listed items simultaneously.

Notice that all the listed items have now been updated with the selected Markup Setting option, confirming that the configuration has been successfully applied across them.

To apply the same Mark Up/Down option to all items:

1. Change the Mark Up/Down option for the first item.

2. Repeat the copy process (select All Columns and click Accept) to apply the updated Mark Up/Down option to all other items.

This ensures uniform pricing logic across the selected items.

Next Step  

Now, let's see how the configured Markup/Markdown settings function in the Outlet POS, step by step.

1. At the outlet POS, receive the Item Markup Setting through NetTrade to ensure the updated pricing rules from HQ are synchronized.

Once the NetTrade synchronization is completed:

• The Markup/Markdown rules configured in HQ will be downloaded to the outlet.

• Selling price calculations during purchase entry will follow the defined rule automatically.

Ensure the NetTrade process is completed successfully before verifying the pricing behavior in the POS.

2. Verify it by navigating to Inventory > Price Level/Fixing > MarkUp/MarkDown - New.

3. Click the View button to display and verify the most recent Markup/Markdown record.

You will see the same Markup/Markdown record that was created in HQ, confirming that the configuration has been successfully synchronized to the outlet POS.

4. Select the same Supplier and the same items to verify the pricing calculations at the outlet POS.

You will observe that the Selling Rate (and MRP, if configured) is automatically calculated based on the defined Item Markup / Markdown rule.

Example Calculation:  

If:

• Base Price (e.g., Landing Cost) = ₹118

• Markup = 30%

Then:

SellingPrice=118+(118×30%)SellingPrice=118+35.4=153.4

So, the final Selling Price = ₹153.40 (before round-off, if applicable).

If a Round-Off rule is configured (e.g., Near ₹1), the final value may be rounded accordingly.

This confirms that the Item Markup / Markdown Settings are working correctly at the outlet POS.

Note: To ensure that the Item Markup / Markdown works automatically during purchase entry, you must enable the Auto Price Fix option in the local configuration at the outlet POS.

When Auto Price Fix is enabled, the system will automatically calculate and update the Selling Price (and MRP, if configured) based on the defined Markup/Markdown rules, without requiring manual intervention.

Now, let's see how the Item Markup / Markdown Settings are configured in Gofrugal RetailEasy.

The process in RetailEasy HQ is similar in purpose to ServEasy HQ, but the navigation and configuration structure may slightly differ.

1. Navigate to MDM > Item Master Management > Item Markup Markdown Settings.

2. Ensure that all the required fields are properly filled in and verified, then click the Save button to complete and store the configuration.

3. Open the Outlet POS, then navigate to Inventory → Mark-Up / Down to access and verify the configured Markup / Markdown settings.

4. Click the F5 (View) button to load and verify the newly created Markup/Markdown master at the outlet POS.

After loading the master using F5 (View), the screen will display the recently created Markup/Markdown configuration, reflecting the settings received from HQ.

5. Open the Purchase Entry screen at the outlet POS and load the required Supplier and Item.

You will notice that the Selling Rate is automatically calculated based on the configured Item Markup / Markdown settings.

Example Calculation  

If:

• Base Price (e.g., Landing Cost) = ₹38.40

• Markup = 30%

Then:

SellingPrice=38.40+(38.40×30%)SellingPrice=38.40+11.52=49.92

Since a Round-Off (Near ₹1) is applied, the final Selling Price becomes:

₹49.92≈₹50

This confirms that the Item Markup / Markdown configuration is functioning correctly and automatically updating the selling price during purchase entry.

Related Link  

For more detailed information about automatic price calculation during purchase entry, refer to the following help document:

Auto Rate Fix in Purchase
https://help.serveeasy.Gofrugal.com/Auto-Rate-Fix-in-Purchase.html

This article explains how the Auto Price Fix / Auto Rate Fix feature works in conjunction with Item Markup / Markdown settings to automatically update selling prices during purchase entry.

Summary:

The Item Markup / Markdown Settings feature in Gofrugal HQ enables businesses to automate and standardize their pricing strategy by defining rules to calculate Selling Price, MRP, or Cost based on Purchase Price, Landing Cost, or MRP.

Instead of manually calculating selling prices during purchase entry, businesses can configure:

• Markup rules (percentage or fixed amount increase)

• Markdown rules (percentage or fixed amount reduction)

• Round-off options (Near, Lower, Upper, None)

• Category/Supplier-based filtering

• Bulk application across multiple items

Once configured and synchronized to outlets (via NetTrade), the system:

• Automatically calculates selling prices during Purchase Entry

• Ensures consistent profit margins

• Prevents accidental selling below cost

• Saves significant time during bulk item loading

• Reduces manual pricing errors

To ensure automatic functionality at the outlet POS, the Auto Price Fix / Auto Rate Fix option must be enabled in local configuration.

Overall, Item Markup / Markdown Settings provide centralized pricing control, improved accuracy, and operational efficiency across all outlets.