Estimate Contract

Explanation

Use this activity to estimate a contract. When estimating a contract, all the lines and line items are considered. All the values will be calculated to form the total contract cost or sales value. To assist the estimator, some default values can be defined for the contract to be used on the line items. If necessary, the estimator can override the default values on the line items.

When entering the values, if the calculation type is Cost Value, the values entered will be based on cost. If the calculation type is Sales Value, the values entered will be based on the sales value.

Prerequisites

A contract must exist.

System Effects

Calculation MethodCalculation TypeQuantityCost RateCost ValueMark upSales RateSales Value
Per Unit/Rate OnlyCost ValueMandatoryMandatoryCalculatedOptionalCalculatedCalculated
Per Unit/Rate OnlySales ValueMandatoryCalculated if Cost Value has a value.Optional. Calculated if Cost Rate has a value. If both Cost Rate and Cost Value have values the Cost Value column has precedence and the cost rate will be calculated.Not relevantMandatoryCalculated
FixedCost ValueOptional. Calculated if Cost Rate has a value. If both Cost Rate and Quantity have values the Quantity column has precedence and the cost rate will be calculated.Optional. Calculated if Quantity has a valueMandatoryOptionalCalculated if Quantity has a value.Calculated
FixedSales ValueOptional. Calculated if Sales Rate has a value. If both Sales Rate and Quantity have values the Quantity column has precedence and the sales rate will be calculated.Calculated if Cost Value and quantity is entered. Otherwise empty.OptionalNot relevantCalculated if Quantity has a value.Mandatory