> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Margin by SKU, Microsoft Dynamics 365

> Margin by SKU for Microsoft Dynamics 365 stores. Tracked live in Vortex IQ Nerve Centre. How to read it, why it matters, and how to act on it.

**Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Ecommerce Platform](/nerve-centre/connectors#connectors-by-type)

## At a glance

|                    |                                                                                            |
| ------------------ | ------------------------------------------------------------------------------------------ |
| **What it counts** | Per-SKU `(Revenue - COGS) / Revenue` for the period. Lists Bottom 20 by margin and Top 20. |
| **Tax treatment**  | Net of VAT.                                                                                |
| **Currency**       | Reporting Currency.                                                                        |
| **Time window**    | `30D`                                                                                      |
| **Alert trigger**  | `any below break-even`                                                                     |
| **Roles**          | owner, finance                                                                             |

## Calculation

Calculated automatically from your Microsoft Dynamics 365 data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

US distributor on BC, 30D 14 Mar to 12 Apr 26. Bottom 5 by margin:

| SKU             | Revenue | Margin% |
| --------------- | ------- | ------- |
| ELEC-LAPTOP-A14 | \$1.84M | 16%     |
| ELEC-MONITOR-27 | \$620K  | 22%     |
| ELEC-DOCK-USB4  | \$480K  | 24%     |

LAPTOP-A14 at 16% drags consolidated margin. Pair with [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts) for trend.

## Sibling cards merchants should reference together

| Card                                                                                         | Why pair            |
| -------------------------------------------------------------------------------------------- | ------------------- |
| [Gross Margin %](/nerve-centre/kpi-cards/microsoft-dynamics/gross-margin-percentage)         | Headline.           |
| [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts)    | Worst movers.       |
| [Top SKUs by Inventory Value](/nerve-centre/kpi-cards/microsoft-dynamics/msd-top-skus-value) | Where margin lives. |

## Reconciling against the vendor's own dashboard

**Where to look in Business Central:**

> **Item Card > Statistics > Profit %**
> **Reports > Sales > Sales Statistics by Item**

**Why may differ:**

| Reason                       | Direction | Why |
| ---------------------------- | --------- | --- |
| **Adjust Cost batch timing** | Small     |     |

**Cross-connector reconciliation:**

No commerce-side counterpart at SKU-margin level.

## Known limitations / merchant FAQs

**Negative margin SKUs?**
Possible from FIFO turnover or markdowns below cost. Card flags.

**How many SKUs ranked?**
Top 20 + Bottom 20 by default; configurable.

**Multi-Company per-SKU?**
Aggregated across Companies; can drill per-Company.

***

### Tracked live in Vortex IQ Nerve Centre

*Margin by SKU* is one of hundreds of KPI pulses Vortex IQ tracks across Microsoft Dynamics 365 and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.