How the System Calculates Costs and Prices -

You may calculate up to five different costs in each Item: Material, Labor, Equipment, Subcontractor
and Other. Each cost is computed in a separate Cost Column, with it's own Cost Type and Budgets
assigned. The above calculation is repeated for all Cost Columns (Labor, Equipment, etc.) which
have a cost assigned to them (i.e., not \$0). The result of each Cost Column's calculations
(material, labor, etc.) are added together to get Item Totals.

You should ALWAYS select Recalculate off the Bid Menu before giving a quote. Check for
any omissions and all calculations carefully. When you "back-compute" (entering a cost in a totals
column vs. in a Unit Cost column), you may find the results off by a few pennies because of dividing
uneven numbers.

Let's examine how one of the five Class columns is computed for a sample material item. All other
columns are calculated in the same way.

 Bid Quantity: 10 EA The Item’s bid quantity will be multiplied times each of the 5 column headings X Conversion Factor: 2.27 Can be multiply or divide ----------- Un-rounded Qty: =22 70 This is the ungrounded order quantity Rounding: Up 1 Can't order partial pieces. Could say none. ----------- Quantity: =23 Amount to order Raw Cost \$6.00 Bid item’s total unit raw cost (could be \$3.00 for material and \$3.00 for labor). Cost Type Markup +\$.60 Based on the Cost Type assigned to the Item and it’s percentage for the Class under Markups, i.e., \$6 * 10% Tax/Markup ----------- Unit Cost: =\$6.60 Raw Unit Cost is 11.20 divided by Bid Quantity Extended Raw Cost is 11.20 times the Bid Quantity of 2.8 Total Cost \$66.00 Qty of 10 times \$6.60 Price Markups +\$6.60 Total Global Markups not compounded might be (Overhead=5% and Profit = 5%) or 10% times \$66.00. If 5% Profit is compounded on overhead then overhead = \$3.30 plus profit of \$3.46 for a total of \$6.76.  Unit Price markup is \$6.60 divided by 10 or .66 ----------- Material Price: =\$72.60 Unit Price is \$7.26

Unit Costs and Prices are simply the appropriate Cost or Price divided by the Bid Quantity, so:

Item Unit Raw Cost = Item Total Extended Raw Cost / Bid Quantity
Item Unit Cost = Item Total Extended Cost / Bid Quantity
Item Unit Price = Item Total Extended Price / Bid Quantity
Item Unit Cost Markup Item Total Cost Markup / Bid Quantity.
Labor Unit Raw Cost = Labor Extended Raw Cost / Bid Quantity.

Special Costing: The Cost Table and The Adjustment List

If you are using the Cost Table feature, and there is a Cost [Table] Code filled in the Item Cost Column,
the Raw Cost comes from the Cost Table. For Bid Items, the Raw Cost is the Cost Table Raw Cost at the
time the Item was copied to the Bid, or when it was last updated from the Price Book, whichever is more recent.

If you are using the Cost Table feature, and there is an Adjustment Code (Adj. Code) associated with your
Item Cost Column, the Adjustment Percent from the Adjustment List is added to the Raw Cost, giving an
Adjusted Cost, which is used in the above calculations instead of the Raw Cost. Adjustment values, like Cost Table
values, are copied to the Bid along with the Item, and can be updated using the Update Item to/from Price Book...
feature, located on the Bid menu.