Allocate Bundle Income

How it Works

Are you struggling to work out the gross margin on products included in bundles?

The Brightpearl Bundle Apportionment App, reapportions the sales income from a bundle sale back to the components in the bundle, so that the product reports show accurate income, cost and profit margin on each of your products, whether they’ve been sold individually or as part of a bundle.

Before

After

OVERVIEW

Many of you will be using bundles to encourage higher order values and differentiate your product offering from the competition.  The customer’s incentive for buying products in a bundle is that it’s usually cheaper than buying them separately, so tracking the gross margin, is even more important.

Whilst Brightpearl provides product reports that show the net sales value, cost and gross margin, as soon as you start selling bundles, the reports no longer give you a true and accurate picture.

Bundles have a selling price in Brightpearl but no cost price, because they don’t exist in their own right. They are a collection of other stock controlled products, whose cost price will inevitably change over time as supplier prices fluctuate.

When the Brightpearl reports show the income, cost and profit you’ve achieved, bundle sales cloud the picture, because the income is attributed to the bundle, and the cost is attributed to the component SKU’s.

The Bundle Apportionment App reapportions income from each bundle on a sales order, to its constituent parts, making sure that you can run the product reports and get accurate, meaningful data.

The App updates your orders in real-time, as soon as they arrive in Brightpearl, irrespective of whether they have been keyed in manually, or downloaded from Amazon, eBay, Magento or any other channel integrations you may be using.  It has no impact on the channel integrations, the Cost tab accurately shows the income attributed to each component of the bundle, and your accounting is unaffected.

SET-UP GUIDE

We recognise that the App is making changes to live sales orders in real-time, so it’s good to know that it’s been running live, day in, day out, for many months and has proved to be very reliable with our customers.

However, it requires a controlled implementation and thorough testing to ensure you are entirely comfortable with the outcome. Our implementation team will guide you through the steps before you go-live.

FAQ

Q: How does it reapportion the income back to the bundle components?

A: It works out the total cost of the components as a proportion of the income, then reapportions the income accordingly.  So let’s say you sell a bundle for £100, and the cost of the components is £20 and £40.  So the total cost is £60 and the margin is £40.  We divide 100/60 = 1.67 as a mark-up.

The income would then be attributed as £20 x 1.67 = £33.33 to component one, and £40 x 1.67 = £66.67 to component two, getting back to our total income of £100.
Q: Do you get any rounding issues?

A: Yep, particularly if there are large quantities of some of the components.  If there is the odd £0.01 or so that we can’t reapportion, we round the components and if all else fails, leave the odd penny on the bundle SKU.

Q: What if I have a sale with more than one bundle on the sales order?

A: We cater for this by treating each bundle and it’s components as a separate calculation and re-apportionment of income, so it won’t aggregate the margin across multiple bundles.  We can also recognise simple products sold on the same order and bypass these, and also determine which lines are shipping charges or other service lines.

Q: I have bundles on Magento which aren’t connected to Brightpearl, so these lines will download from by website with no SKU associated with the bundle item.  Can it handle this?

A: Yes, it made our brains hurt for a little while, but the App traverses through the order and identifies this type of bundle and what components belong to each bundle.

Q: How is the integration supported?

A: The integration is supported directly by Perceptium and we offer both email and telephone support.

SUPPORT/CONTACT INFO

For more information, please use the details below or complete the Contact Us form