The profitability Calculation Section gives you a breakdown of your profitability per booking / trip
Profitability calculation options
The system offers three options to calculate profitability. This can be found in the Pricing section of the Aircraft records. These are the Owner Split, Commission based and Charter Cost based calculations.
Owner Estimated Revenue (Owner Split)
This is mostly used in North America and based on the contracts with the Aircraft Owners. This covers the part where the owner and the aircraft management company agrees on how they split the booking revenues. Based on this percentage that is to be added in the Account of the owner, the system auto calculates the amount that is for the owner and the rest, which is the profit of the operator. The user can also add a profit margin to different flight related expenses and the system splits that revenue as well between the owner and the company. The calculation is appearing next to the Price matrix.
Commission Based Profit Calculation
While the Owner Split due to its complexity has its own panel, the Commission based profit calculation is part of the Pricing matrix. In order to activate this feature set the Pricing Model of the Aircraft to Cost, add the required values and the system will calculate within the matrix the profit in the DOC Margin field
Charter Cost Based Profitability Calculation
When this option is used the system is calculating the profit in the Margin field in the Pricing matrix. Also in this option the Pricing Model has to be set as Cost.