How is the GP calculated

  • Normally, every company will have their secret points calculations, for example 1 point = 0.7 RM. or 1 point = 2 RM etc… base on this secret point value, a lot of things can be done, because provision for membership points rewarded (which eventually, the customer may or may not redeem the point), could be an avenue to increase the provision in accounting, and lower the profit, and hence, reduce the corporate tax.
  • As every company define their "secret point value", and different from company to company, special custom reports could be created to incorporate the calculations of these GP with membership points provision line by line (item by item). Some companies don't bother with this line by line provision, because value is too small, in that case, they just goto the Membership module and generate a monthly total points rewarded and total points redeemed, and adjust the provision, to reflect this in the P&L and Balance sheet.

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