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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.
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Bid Quantity:
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10 EA
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The Item’s bid quantity will be multiplied times each of the 5 column headings
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X
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Conversion Factor:
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2.27
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Can be multiply or divide
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Un-rounded Qty:
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=22 70
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This is the ungrounded order quantity
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Rounding:
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Up 1
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Can't order partial pieces. Could say none.
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Quantity:
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=23
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Amount to order
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Raw Cost
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$6.00
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Bid item’s total unit raw cost (could be $3.00 for material and $3.00 for labor).
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Cost Type Markup
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+$.60
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Based on the Cost Type assigned to the Item and it’s percentage for the Class under Markups, i.e., $6 * 10% Tax/Markup
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Unit Cost:
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=$6.60
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Raw Unit Cost is 11.20 divided by Bid Quantity
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Extended Raw Cost is 11.20 times the Bid Quantity of 2.8
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Total Cost
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$66.00
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Qty of 10 times $6.60
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Price Markups
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+$6.60
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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
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Material Price:
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=$72.60
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Unit Price is $7.26
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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 have the optional 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 have the optional Adjustments 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.
Effects of Turning Totaling Off
1. No visible effects after totals initially turned off. Existing footer Bid/Shown totals and accumulator totals are still displayed.
2. Changes made to Bid Item Quantity or Raw Costs are reflected in Bid Item fields, but are not added to Bid Cost or Price totals or accumulators. Totals are marked and "RECALCULATE" is displayed in the footer.
3. Changes in Price Book Items continue to calculate.
4. Attempts to change accumulator Total Cost and Total Price values when totals are dirty bring up warning that displayed totals may not be accurate, and but still back-compute accurately, and update the current accumulator's Cost, Price Markup Amount, and Price (and Raw Cost and Cost Markup for Cost Types).
Markup Totaling with Auto Totaling turned off on Bid Menu.
Markup Amounts are zeroed so you will not see an erroneous amount, and they are not changeable (or computed) until you recalculate the Bid or turn Auto-Totaling on.
Note: If you are going to make several changes to the Markups and do not want to wait for the auto-totaling each time, then turn off the auto-totaling on the Bid Menu.
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