Basic Cost and Earnings Planning
Pricing in COSMO Project Manufacturing uses standard Microsoft Dynamics 365 Business Central functionality. However, because of the enhanced functionality brought to the application by COSMO Project Manufacturing, several factors must be considered when setting up pricing. These are discussed in this section.
Pricing
Pricing for projects is set up on the Project Budget Calculation page. All functions relevant to pricing are accessed from this page.
| Prices for… | Consider these factors… |
|---|---|
| Services | - Prices can be derived from the service resource; these prices can be amended. - Prices are defaulted to the Project lines based on the Work Type. These prices can be amended. - If prices for the service are in a unit of measure different from the unit of measure on the Project line, the price will be converted with respect to the Project line unit of measure. - Quantity-dependent prices cannot be used. - Currency Code is supported on the sales side. - Unit prices can be set up by project. |
| Items | - Standard prices are taken from the Item Card. - Calculated direct unit cost (Project Calc. Direct Cost) is taken from the Item Card. - Direct unit costs from vendors include Currency, Unit Cost, and Quantity. - Unit prices for customers and customer groups include Currency, Unit Cost, and Quantity. - Prices from vendors can be selected by date. - Prices and Line Discounts can be project specific. - Sales Line Discounts include Currency, Unit Cost and Quantity. - Unit Prices and Sales Line Discounts can be selected by date. |
| Other Project Line Types | - Traveling: prices are derived from the Project Traveling Expenses page (select Travel Code). - General: prices are derived from the General Component Card. - Machine Centers and Work Centers: only standard costs are considered. |
Results of Pricing
As a result of pricing, the Direct Unit Cost and Unit Price fields are processed in the Project Budget Calculation page.
Note
The Unit Cost will calculate on the line and does not come from pricing.
Other Pricing Considerations
Along with pricing, Project Charges are considered in the Project Budget Calculation page as follows:
- Indirect Cost % will be used to calculate the Unit Cost.
- Extra Charge % will be used if Unit Price Base is Cost. If Unit Price Base is Price, this field is calculated.
In addition to these listed costs and prices, purchase and sales discounts can be set up to reduce the Unit Cost so that Unit Price and Unit Cost calculation is evaluated similarly.
Indirect Cost % in Purchase Processes
Indirect Cost % can be set up together with Project Extra Charges for calculation purposes in the Project Budget Calculation. Additionally, Indirect Cost % are used with overhead costs in purchasing, which is handled differently for Items and other component types (Resources and General Components).
When Items are purchased, the Indirect Cost % from the Project Budget Calculation are transferred to the Purchase Document to ensure that overhead costs are added in Inventory as well as in Projects. Indirect Cost % can only be used together with inventoriable Items, which means Items with Type = Inventory. Items with Type = Service and Type = Non-Inventory are not considered; therefore, Indirect Cost % for these Item types are not included in Project Ledger Entries. Another exception is Items with Costing Method = Standard, which already include the overhead costs in the Standard Unit Cost value.
When Resources or General Components are purchased, the Indirect Cost % are not transferred from the Project Budget Calculation to the Purchase Documents. The component types are converted to G/L Accounts, and due to the limitation in Purchase Documents, it is not possible to enter Indirect Cost % on Purchase Lines. However, the Indirect Cost % specified in the Project Budget Calculation are considered when putting overhead costs to Project Ledger Entries.
Manual Pricing
Automatically triggered pricing can be by-passed using the Manual Pricing field options in the Project Budget Calculation page lines. The options are:
- Direct Unit Cost – Direct Unit Cost can be manually entered but the Direct Unit Price is handled automatically.
- Unit Price – Direct Unit Price can be manually entered but the Direct Unit Cost is handled automatically.
- Both – Automatic pricing is disabled for both cost and price.
Note
The Manual Pricing field can be preset on each component.
See Also
Project Budget Calculation Page
Purchase Processes
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