The sales price of a project transaction is the amount used to calculate revenue for that transaction on a contract. It consists of a sales price basis, which is the sales price before markup, and a markup price, which is added to it. How the sales price basis is determined depends on whether the transaction is priced as Cost Plus or from a price list. For transactions created from travel expense sheets, the sales price basis is determined differently.
Whether a project transaction is priced as Cost Plus is set on the sales price source connected to the transaction, not on the contract or project as a whole. A transaction can be priced from a Specific Sales Price registered for the project, or from a price list item connected to the project or customer. Each source is individually marked as Cost Plus or not.
For a transaction priced from a source marked as Cost Plus the sales price basis is derived from cost, using the cost plus basis described below. For a transaction priced from a source that is not marked as Cost Plus, the sales price basis is set to the value in Sales Price.
For a Cost Plus transaction with a report code of type Time, the cost plus basis determines which cost value the sales price basis is set to:
For a Cost Plus transaction with a report code of type Cost or Material, the sales price basis is always set to Total Internal Price, regardless of the cost plus basis setting.
If the transaction was reported by a contractor connected to a purchase order, any non-deductible tax on that purchase order line is added to the internal price used above. See About Project Reporting for Contractors for more information.
For transactions priced as Cost Plus, markup can be applied using Markup Percentage, Markup Price, or both.
The value in Markup Percentage is applied to the cost plus basis value and affects the sales price of the transaction. The percentage is applied before any markup amount.
The value in Markup Price is added to the cost plus basis value when determining the sales price of the transaction. Any value in Markup Percentage is applied before the markup amount.
Markup Currency Code identifies the currency in which the markup amount is defined. The markup amount is converted to the sales currency of the project transaction.
Project transactions created from a travel expense sheet do not use cost plus basis or price list pricing. Instead, the sales price basis is set using a travel expense margin: either a Specific Margin defined for a sub project, activity, or report code, or a Standard Margin connected to the project or customer. A Specific Margin always takes priority over a Standard Margin.
See the activity description for Register Travel Expense Margin for information about how the margin is calculated.
If no margin has been defined for the transaction from any of these sources, the sales price basis is set equal to the internal price.
A project is connected to a price list item that is not marked as Cost Plus. A time report is entered for an employee on that project. The sales price basis for the resulting project transaction is taken directly from Sales Price, regardless of the employee's internal price.
A separate project is connected to a Specific Sales Price marked as Cost Plus, with the cost plus basis set to Total Internal Price. A time report is entered for the same employee. The sales price basis is set to the employee's internal price plus the overhead allocated to the transaction.
If a travel expense is reported on either project, and no travel expense margin has been defined for it, the sales price basis is set equal to the internal price in both cases, regardless of the cost plus basis setting used for time reporting on that project.