Multiply cost of product by additional multiplier column
The margin calculates fine for one off revenue. Each item has a cost, sell price and therefore a margin which is reported correctly.
The margin does not calculate properly in the monthly revenue table when you use the multiplier column (which we use for the number of months subscription).
It calculates the revenue correctly (price x number of licenses x number of months) but it only takes one month of cost into the calculation. Ie the multiplier column impacts revenue but not cost and therefore the margin calculation is massively inflated.
This customer is buying licenses that are £5 per user, per month for a phone system.
They have 1500 users on that phone system so need 1500 licenses.
The contract is for 5 years so there are 60 months in the multiplier column.