# MRP Formula

**YouTube**: [How to Auto Calculate MRP via Formula in Item Creation?](https://www.youtube.com/watch?v=FZDMblrMXfI\&t=4s)

## How to Auto Calculate MRP via Formula in Item Creation?

 In this tutorial, we will guide you through the process of **automatically generating MRP** while creating an item using a dynamic formula in **Logic ERP**. This feature eliminates manual calculations, ensuring **accuracy and efficiency** in pricing.

### **Accessing the Configuration Settings**

* Navigate to the Setups/Setup Items and then click on "Setup Items Multiple Packs/Sizes".
* Click on the Configuration.
* Locate the option "MRP Formula" under the Configuration option-2 tab

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2F1J9qnCD0crpo0JsgnKOQ%2FMRP%20Formula.png?alt=media&#x26;token=37fa6cd3-4714-48d1-b15a-42dd3674ac77" alt=""><figcaption><p>As shown in the picture, click on <strong>"MRP Formula"</strong></p></figcaption></figure>

### **Creating a Custom MRP Formula**

* Use the available fields to construct your **MRP formula** based on your business requirements.
* In this example, we have defined a formula where:
  * **MRP = Sale Rate + 35% (Markup)**
  * The **ROUND function** is used to round the MRP to the nearest whole number, ensuring consistency.
  * The zero in the function ensures that **no decimal places** are included in the final MRP value.
* Click **Save** to apply the formula.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FoMCWDH1yjbwC2HoTK6Rc%2FScript%20for%20MRP.png?alt=media&#x26;token=4c9df460-4874-4637-a88b-e7f27dd82d15" alt=""><figcaption><p>Create the script exactly as explained and shown in the picture.</p></figcaption></figure>

### **Testing the MRP Formula**

* Create a new item and **enter the sale rate**.
* The **MRP field does not require manual entry**; it will be automatically generated based on the predefined formula.
* Save the item and re-open to verify the **auto-calculated MRP**.

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2Fv5bRgtAMzJ4gUYYxAMLf%2FMRP%20Create%20through%20formula.png?alt=media&#x26;token=e04a26d9-e7ba-4544-bcd3-16085c3236c1" alt=""><figcaption><p>This image illustrates that the MRP has been successfully generated using the MRP formula.</p></figcaption></figure>

### **Key Benefits of Using an MRP Formula**

* **Eliminates Manual Calculations** – Reduces errors and saves time.
* **Ensures Pricing Accuracy** – MRP is consistently calculated across all items.
* **Improves Efficiency** – Simplifies item creation and reduces manual intervention.
* **Enhances Financial Records** – Helps maintain accurate pricing data for inventory and reporting.

By leveraging the **MRP formula feature** in Logic ERP, businesses can optimize their pricing strategy, reduce manual effort, and enhance overall inventory management.