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Define price for project changes
Activity Flow

You can apply price changes to a project change order in several ways:

  • Apply price indexation to a project.
  • Change the project WBS and accordingly change the related prices.

Sales representative Sales representative Start Start Set up sales prices

Set up sales prices for project categories

Set up default sales prices for hour, expense, equipment, fee, and subscription project categories.

 Specific pricing required for project change order? Specific pricing required for project change order? Set up project change order prices Set up project change order prices In project change orders, the actual project sales price setup for hours, expenses and fees is used. However, you can define project change order-specific price setup for specific categories. These prices are applicable to the whole project change order. However, if you have defined a specific price for a sub-project, the project change order price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project. If you transfer a project change order to a project, for each project change order-specific price setup, a project-specific line is added to the related project sales price setup. Procedure 1. Click Project management and accounting -> Common -> Change orders -> Project change orders. 2. On the Project change orders list page, select a project change order with status Created. 3. On the Action pane, on the Quotation tab, in the Control group, click Quotation Margin. 4. On the Project quotation margin form, click Get actual prices. On the dialog, click OK. As a result, the latest prices are retrieved from the project price setup. Note: On the Get actual prices dialog, if the Overwrite check box is:Cleared, only the prices are updated for which the Override check box is cleared as well.Selected, all prices are updated. 5. Make the required changes to the prices. You can change the Sales price model and the Pricing. Note: If you make a change, automatically these check boxes are selected:Manual override: indicates that the price is changed.Recalculate: the price is changed, but not yet applied to the work breakdown structure of the project change order. 6. Apply the changed prices to the work breakdown structure of the project change order. To apply:A single changed price, click Calculate.All (changed) prices, click Calculate all.As a result:The changed price setup is updated on each project in the work breakdown structure.Prices are recalculated for the estimate lines of the tasks in the work breakdown structure. Note: If a project-specific price is defined, the price setup is not updated for this project node and its sub-project nodes. 7. Close the Project Quotation Margin form. Specific pricing required for sub-projects? Specific pricing required for sub-projects? Set up sub-project prices Set up sub-project prices On a project change order work breakdown structure, you can use projects in the hierarchy. The default sales prices for these projects are defined by the sales prices in the quotation margin. However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories. These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project. However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project. If you transfer a project change order to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup. Procedure 1. Click Project management and accounting -> Common -> Change orders -> Project change orders. 2. On the Project change orders list page, select a project change order with status Created. 3. On the Action pane, on the Quotation tab, in the Control group, click Quotation statement. 4. On the Quotation statement form, on the Work breakdown structure pane, select a line of type Project. 5. On the Project quotation prices pane, click Get actual prices. On the dialog, click OK. As a result, the latest prices are retrieved from the project price setup. Note: On the Get actual prices dialog, if the Overwrite check box is:Cleared, only the prices are updated for which the Override check box is cleared as well.Selected, all prices are updated.Except for the top-level project, specific line prices for projects in the work breakdown structure remain unchanged. 6. Make the required changes to the prices. You can change the Sales price model and the Line pricing. Note: If you make a change to the top-level project in the work breakdown structure, automatically the Manual override check box is selected. Manual override indicates that the price is changed manually. If you change the price for another project in the work breakdown structure, the Manual override check box remains cleared. Instead, the line price is shown next to the original price. 7. Close the Quotation statement form. Fixed-price project? Fixed-price project? Define project change order contract totals Define project change order contract totals For a project change order work breakdown structure, for all project lines of type Fixed price, you define the Contract total. You can do so on the Quotation statement form in two ways:Simulate and transfer the contract total.Manually enter or change the contract total.To simulate the contract total, you can use:Margin The sales price minus the cost price (also known as gross margin).Formula: sales price - cost price / sales price * 100%Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%Markup The amount by which the cost price is increased to derive the sales price.Formula: sales price - cost price / cost price * 100%Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%. Procedure 1. Click Project management and accounting -> Common -> Change orders -> Project change orders. 2. On the Project change orders list page, select a project change order with status Created. 3. On the Action pane, on the Quotation tab, in the Control group, click Quotation statement. 4. On the Quotation statement form, on the Work breakdown structure pane, select a project line of type Fixed price. 5. If you want to simulate the contract total, on the Margin/Markup simulator pane, select Margin or Markup. Note: If no simulation is required, proceed with step 8. 6. Enter the relevant margin or markup percentages for items, hours, and expenses and click Simulate. 7. If you are satisfied with the suggested sales price, click Transfer. As a result, the suggested sales price is copied to the Contract total of the selected project line. Note: You can repeat steps 4-7 for several project lines. 8. On the Work breakdown structure pane, you can manually enter or change the Contract total for project lines of type Fixed price. Note: You can repeat this step for several project lines. 9. If you are not satisfied with the result, you can click:Reset - As a result, the changed-but-not-yet-saved contract totals are reset to the original values. You can repeat steps 4-8.Cancel - As a result, the Quotation statement form is closed, and the changed-but-not-yet-saved contract totals are reset to the original values. 10. If you are satisfied with the result, you can click:Save - As a result, the changed contract totals are saved.Save and close - As a result, the Quotation statement form is closed, and the changed contract totals are saved.As a result, for each project line for which you saved a contract total, an on-account line with the contract total is created in the Estimated costs and revenue. Notes You can simulate the contract total for project lines of each type. However, you can only transfer the suggested sales price for fixed price project lines. End End Yes No Yes No Yes No

Activities

Name Responsible Description

Set up sales prices for project categories

Sales representative

Set up default sales prices for hour, expense, equipment, fee, and subscription project categories.

Set up project change order prices

Sales representative

In project change orders, the actual project sales price setup for hours, expenses and fees is used. However, you can define project change order-specific price setup for specific categories.

These prices are applicable to the whole project change order. However, if you have defined a specific price for a sub-project, the project change order price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project.

If you transfer a project change order to a project, for each project change order-specific price setup, a project-specific line is added to the related project sales price setup.

Set up sub-project prices for project change order

Sales representative

On a project change order work breakdown structure, you can use projects in the hierarchy. The default sales prices for these projects are defined by the sales prices in the quotation margin. However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.

These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project. However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.

If you transfer a project change order to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup.

Define project change order contract totals

Sales representative

For a project change order work breakdown structure, for all project lines of type Fixed price, you define the Contract total. You can do so on the Quotation statement form in two ways:

  • Simulate and transfer the contract total.
  • Manually enter or change the contract total.

To simulate the contract total, you can use:

  • Margin
    • The sales price minus the cost price (also known as gross margin).
    • Formula: sales price - cost price / sales price * 100%
    • Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%
  • Markup
    • The amount by which the cost price is increased to derive the sales price.
    • Formula: sales price - cost price / cost price * 100%
    • Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%.

Activities

Name Responsible Description

Set up sales prices for project categories

Sales representative

Set up default sales prices for hour, expense, equipment, fee, and subscription project categories.

Set up project change order prices

Sales representative

In project change orders, the actual project sales price setup for hours, expenses and fees is used. However, you can define project change order-specific price setup for specific categories.

These prices are applicable to the whole project change order. However, if you have defined a specific price for a sub-project, the project change order price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project.

If you transfer a project change order to a project, for each project change order-specific price setup, a project-specific line is added to the related project sales price setup.

Set up sub-project prices for project change order

Sales representative

On a project change order work breakdown structure, you can use projects in the hierarchy. The default sales prices for these projects are defined by the sales prices in the quotation margin. However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.

These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project. However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.

If you transfer a project change order to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup.

Define project change order contract totals

Sales representative

For a project change order work breakdown structure, for all project lines of type Fixed price, you define the Contract total. You can do so on the Quotation statement form in two ways:

  • Simulate and transfer the contract total.
  • Manually enter or change the contract total.

To simulate the contract total, you can use:

  • Margin
    • The sales price minus the cost price (also known as gross margin).
    • Formula: sales price - cost price / sales price * 100%
    • Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%
  • Markup
    • The amount by which the cost price is increased to derive the sales price.
    • Formula: sales price - cost price / cost price * 100%
    • Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%.

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