> ## 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 Compression, Microsoft Dynamics 365

> Margin Compression 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** | Alert when [Gross Margin %](/nerve-centre/kpi-cards/microsoft-dynamics/gross-margin-percentage) drops >2 percentage points vsP. |
| **Tax treatment**  | n/a.                                                                                                                            |
| **Currency**       | Reporting Currency.                                                                                                             |
| **Time window**    | `30D vsP`                                                                                                                       |
| **Alert trigger**  | `gross margin drop >2pp vsP`                                                                                                    |
| **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: GM% dropped from 31.2% to 29.4% (-1.8pp), just under 2pp threshold. Trend is the warning. Pair with [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts) for SKU-level cause.

## Sibling cards merchants should reference together

| Card                                                                                       | Why pair     |
| ------------------------------------------------------------------------------------------ | ------------ |
| [Gross Margin %](/nerve-centre/kpi-cards/microsoft-dynamics/gross-margin-percentage)       | Underlying.  |
| [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts)  | SKU drivers. |
| [Avg Landed Cost](/nerve-centre/kpi-cards/microsoft-dynamics/average-landed-cost-per-unit) | Cost-side.   |

## Reconciling against the vendor's own dashboard

**Where to look in Business Central:**

> See [Gross Margin %](/nerve-centre/kpi-cards/microsoft-dynamics/gross-margin-percentage) reconcile.

**Cross-connector reconciliation:**

[Dead Stock with Active Ad Spend](/nerve-centre/kpi-cards/microsoft-dynamics/dead-stock-with-active-ad-spend) drives clearance markdowns which compress margin.

## Known limitations / merchant FAQs

**Threshold tuning?**
2pp default. Larger merchants tighten to 1pp.

**FIFO turnover false positives?**
Possible. The card flags; investigation confirms.

***

### Tracked live in Vortex IQ Nerve Centre

*Margin Compression* 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.