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 Method Calculation Type Quantity Cost Rate Cost Value Mark up Sales Rate Sales Value
Per Unit/Rate Only Cost Value Mandatory Mandatory Calculated Optional Calculated Calculated
Per Unit/Rate Only Sales Value Mandatory Calculated 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 relevant Mandatory Calculated
Fixed Cost Value Optional. 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 value Mandatory Optional Calculated if Quantity has a value. Calculated
Fixed Sales Value Optional. 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. Optional Not relevant Calculated if Quantity has a value. Mandatory

Window

Sales Contract

Related Window Descriptions

Sales Contract
Sales Contract/Items
Sales Contract/Items/Line/Items

Procedure

  1. Open the Sales Contract window and query for the contract number.
  2. Click the Items tab.
  3. Create a new record and enter values in the Line No and Line Description fields.
  4. Save the record.
  5. Create a new record in the lower table on the Items tab. (You have to refresh the contract prior to creating a new record.)
  6. Enter values in the Item Name and Item Description fields.
  7. In the Calculation Method list, select a method. Possible values are Per Unit, Rate Only, and Fixed.
  8. In the Calculation Type list, select a calculation type. Possible values are Sales Value and Cost Value.
  9. Enter a value in the Unit Code field or select from the List of Values.
  10. Based on the values you have selected in the Calculation Method and Calculation Type fields, enter values in any other required fields. (Refer System Effects.)
  11. Save the record.
  12. Once the contract is estimated with lines and items, right click on the contract header, point to Status and then click Estimate.