---
title: "Cost calculation for upfront invoicing"
slug: "cost-calculation-for-upfront-invoicing"
description: "Calculate sales prices for upfront invoicing using project IDs, list prices, markups, and handling fees for accurate project billing."
updated: 2026-06-29T05:17:43Z
published: 2026-06-29T05:17:43Z
canonical: "docs.staedean.com/cost-calculation-for-upfront-invoicing"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.staedean.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Cost calculation for upfront invoicing

When running the cost calculation with **Project ID** (called from project item requirement), a special calculation formula is used for populating the sales price of the components, depending on the value of the **Use list price** field in the project contract for the selected project (**Project management and accounting > Projects > Project contracts**, **Upfront material sales price** field group):

- If the **Use List price** is enabled, the **List price** field in the **Manage projects** FastTab in the **Released product details** form (**Product information management > Products > Released products > Released product details**) is used for calculating the **Sales price per unit**.
- If the **Use List price** is disabled, the standard price base is used for the calculation.

If the calculation is run with **Project ID**, markup and handling fee are calculated based on the values specified in the **Project calculation markup group** (**Project management and accounting > Setup > Prices > Project calculation markup groups**) and the **Project calculation handling fee group** (**Project management and accounting > Setup > Prices > Project calculation handling fee groups**) assigned to the components and the customer ID in the project contract funding source. The markup and the handling fee calculation can be set to use an individual value or accumulate all the applicable values for that specific scenario.

The **Handling fee per unit** is displayed in the **Calculation details** form line section to show the handling fee calculated for each line (**Project management and accounting > Projects > All projects > Plan > Item requirements> Manage > Calculation > Calculation > Complete**).

The calculation results can be transferred to a new milestone in the billing rule containing the project via the **Transfer > To milestone** button in the **BOM calculation results** form (**Project management and accounting > Projects > All projects > Plan > Item requirements> Manage > Calculation > All project calculations**). This form displays all calculations related to the project.

The **Creation control** parameter (**Project management and accounting > Setup > Project management and accounting parameters > Invoice**) is controlling whether a warning or error message should be raised in case there are already upfront invoicing related milestones in the billing rule.

The **True-up details** table is populated at the milestone creation, and the milestone sales prices are populated based on the data in the **True-up details** table, which can be opened by clicking the **True-up details** button in the **On-account** form (accessible via clicking the **View details** button on the milestone or via **Project management and accounting > Projects > All projects > Manage > Bill > On-account transactions**).

> [!NOTE]
> Note
> 
> The **True-up details** button is visible only when a line is selected which **Transaction origin** is **Milestone**.

The **Billing rule** is connected to the BOM calculation via the **Upfront material project ID** and **Upfront handling fee project ID**, specified when creating a new billing rule with **Line type** = **Milestone**. **Billing rule**, **Upfront material project ID,** and **Upfront handling fee project ID** are also visible on the formula calculation form (**Project management and accounting > Projects > All projects > Plan > Item requirements > Calculation > Calculation**).

## Related

- [Extending project-related batch order functionality](/extending-project-related-batch-order-functionality.md)
- [True up invoice calculation](/true-up-invoice-calculation.md)
- [Revenue recognition](/revenue-recognition.md)
- [Life Sciences Advanced Finance Management](/life-sciences-advanced-finance-management.md)