# How To Calculate GMAU in SAP4Hana | Arithmix

Learn how to calculate Gross Margin Analysis Units (GMAU) in SAP4Hana with this comprehensive guide. Discover the essential steps and best practices to accurately measure profitability and optimize your business operations.

Calculating GMAU in SAP4Hana is a straightforward process that can provide valuable insights into your organization's performance. GMAU stands for Gross Margin Analysis by Unit, and it is a measure of profitability that takes into account both the revenue and cost of goods sold for a particular product or service. By calculating GMAU, you can identify which products or services are generating the most profit and which ones may need to be reevaluated or discontinued.

To calculate GMAU, you will need to gather data on the revenue and cost of goods sold for each product or service. Revenue is the total amount of money earned from the sale of a product or service, while cost of goods sold is the direct cost associated with producing or delivering that product or service. This can include materials, labor, and overhead costs.

Once you have this data, you can calculate GMAU using the following formula:

GMAU = (Revenue - Cost of Goods Sold) / Units Sold

For example, if you sold 100 units of a product for \$10,000 and the cost of goods sold was \$6,000, the GMAU would be:

GMAU = (\$10,000 - \$6,000) / 100 = \$40

This means that for each unit sold, the product generated \$40 in gross margin.

## What Is GMAU?

GMAU is a measure of profitability that takes into account both the revenue and cost of goods sold for a particular product or service. It is a useful tool for identifying which products or services are generating the most profit and which ones may need to be reevaluated or discontinued. By calculating GMAU, you can make informed decisions about pricing, production, and marketing strategies.

GMAU is particularly valuable for businesses that sell multiple products or services, as it allows you to compare the profitability of each one. This can help you focus your resources on the products or services that are most profitable and make adjustments to those that are not performing as well.

## When Is It Valuable To Calculate GMAU?

Calculating GMAU is valuable for any business that wants to improve its profitability. It can be particularly useful in the following situations:

• When introducing a new product or service: By calculating GMAU for a new product or service, you can determine whether it is likely to be profitable and adjust pricing or production strategies accordingly.
• When evaluating existing products or services: GMAU can help you identify which products or services are generating the most profit and which ones may need to be reevaluated or discontinued.
• When setting pricing strategies: GMAU can help you determine the optimal price for a product or service based on its profitability.
• When making production decisions: GMAU can help you determine which products or services are most cost-effective to produce and which ones may need to be adjusted or discontinued.

Overall, calculating GMAU can provide valuable insights into your organization's performance and help you make informed decisions about pricing, production, and marketing strategies. By regularly monitoring GMAU, you can ensure that your business is operating at its highest level of profitability.

## How Do You Calculate GMAU in SAP4Hana

SAP4Hana itself isn’t naturally geared towards letting you calculate complex metrics like GMAU. As an alternative, teams typically use products like Arithmix to import data from SAP4Hana and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like SAP4Hana, combine it with data from other systems, and create calculations like GMAU.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.