> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/configurations/purchase-voucher-configurations/other-settings-1/calculate-s.r.-through-formula.md).

# Calculate S.R. Through Formula

**YouTube:** [How to Calculate Sale Rate Using a Formula in Purchase ?](https://www.youtube.com/watch?v=y5pJxFb7CIE)

## How to Calculate Sale Rate Using a Formula in Purchase?

In this tutorial, we will demonstrate how Logic ERP can automatically calculate the sale rate based on a predefined formula within the **purchase voucher**.

***

### **Step-by-Step Guide:**

* Navigate to **Purchase Configuration**.
* Locate and enable the option: **“Calculate S.R. Through Formula.”**

<figure><img src="/files/40i1oJ2KcCIpujIpTDTI" alt=""><figcaption><p>Let's keep this feature enabled to observe its Impact on Billing.</p></figcaption></figure>

* **Define the Sale Rate Formula**:
  * Navigate to the **Define Rate Formulas** Other Settings - 1.
  * Specify the **Expense Name** relevant to the calculation.
  * Set the **Base Rate**, usually the **Purchase Rate**.
  * Optionally, define a **default value** for any expense that needs to be **added or subtracted** from the base rate.

<figure><img src="/files/medRpMnVkLOEd64CbKae" alt=""><figcaption></figcaption></figure>

* **Use Related Fields in Formula**:
  * You can include variables such as margin percentage, additional costs, or discounts.
  * **Example**: If the Purchase Rate is ₹100 and a 20% margin is added, the **Sale Rate will be ₹120**.

***

### **Create a Purchase Voucher:**

* Enter the **transaction details** and input the **basic purchase rate** for each item.
* The **Sale Rate** will now be **automatically calculated** based on your defined formula.

<figure><img src="/files/PdZTriCaIO68bbWh4QTg" alt=""><figcaption></figcaption></figure>

***

### **Conclusion**:

This feature helps **automate pricing**, eliminate manual errors, and ensures consistency in sale rates across transactions in Logic ERP.


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