Estimate Features and Calculations

Settings#

• To use estimates in transactions, add the Transaction Type setting: Estimating > Enable Estimating and select Quotations or Production from the dropdown list in the Value column. Production is usually selected for Work Orders and activates Production Planning functions.

Estimates and Transactions#

• Estimates are items on a transaction. To add one, click the Estimate button, directly above the items on the right.
• The Estimate button opens a dropdown list of Estimate Types. If there is only one Estimate Type, the estimate is added automatically.
• You can add several estimates to a transaction.
• Assembly items can be converted to limited estimates, manually or automatically. After conversion, a single tab shows the materials and routing and lets you edit the quantity and costs.
  • Automatically:
    • Activate this feature by adding the setting Estimating > Convert Assembly (ASM) Items to Estimates to the applicable Transaction Type and checking the box.
    • If the box is checked, all the assembly items added to the transaction are converted immediately.
    • Right-click the assembly item on the transaction and select Open Estimate to view and edit the estimate.
  • Manually:
    • If the automatic feature is disabled, assembly items can be converted to estimates by right-clicking the item on the transaction and selecting Convert to Estimate.
    • After conversion, you can open the estimate from the item’s right-click menu.
• Estimates can only be added to transactions in the local currency. As a workaround, create an Estimating/Costing transaction and copy it to a transaction that supports foreign currency (e.g. a Quotation). However, the workaround only works with a single quantity.

Key Estimate Features#

Prices#

• Estimates are always in the local currency.
• The cost prices used for services are based on the hourly rate of the Cost Centre selected on the item’s Estimating Attributes.
• If no cost centre is selected, the prices used are the Fixed, Unit and Minimum Costs entered on the item’s Estimating Attributes.

Markups and Adjustments#

• An overall Markup is applied to the Total Cost of the estimate. You can edit this markup on the Prices tab.
• To add a further markup on the Cost Price, enter a percentage in the Adjustment % field on the Prices tab.
• You can also use the Adjustment field to give the customer a discount (a negative adjustment). The discount is not reflected in the overall markup.

Quantities#

• You can add Multiple Quantities.
• One quantity is set as the active quantity, and the other quantities appear for comparison.
• The estimate price is for the active quantity.

Descriptions#

• An estimate can have a detailed description that is auto-created from the items added to Groups and Costings.
• You can edit the description.
• The full description appears on output forms (e.g. quote letters) to clarify which items and services are included in the quote.

Updates#

• Item setups are copied to an estimate. They are not updated when the linked item changes, unless you select Actions (button) > Update from Setups.

Deleting#

• If a part on an estimate is deleted, the linked items are also deleted.

Copying Transactions#

• If a transaction with an estimate is copied to a transaction without an estimate, the estimate tables and quantities are not copied.
• An estimate copied to a Work Order is fully editable. It compares:
  • The amount estimated on the Quotation (Estimate QT).
  • The production estimate on the Work Order (Production Estimate (WO)).
  • The Actual Costs.
• When an estimate item is copied to another transaction that uses resolve (e.g. Quotation to Sales Order), that item’s resolve is set to Produce. Resolve is the function that determines how inventory items are treated (e.g. purchased, reserved, produced).

Calculation Steps#

1. Update the Imposition to determine the final layout.
2. Iterate the Quantities, first the inactive ones, then the active one, as follows:
   1. Update the Quantities by Type.
   2. Add all the Bill of Materials (BOM) Item quantities.
   3. Add all the Routing Item quantities.
   4. Add the BOM quantities to the Routing quantities.
   5. Transfer the total to the Pricing tab and Summary section.
3. Generate the description.
4. Update the entry on the transaction.

Update the Imposition#

1. Iterate Parts.
   1. Iterate Services by Order ID.
      1. Set Small Size from Part.
      2. If Type ID = 2, Calculate Imposition, Set Large Size.
      3. If Type ID = 1, Calculate Imposition, Set Large Size.
      4. On first Item: Save Large Size for BOM Imposition > Small Size.
   2. Iterate BOM.
      1. Set Small Size from Var.
      2. Calculate Imposition by Type.

Update the Quantities#

1. A separate procedure calculates quantities by Qty Type. See Quantity Types.

Total the BOM Items#

1. Add the Waste % to the Unit Qty, which becomes Unit Qty x (100 + Waste %) / 100.
2. Calculate the Total Qty: Fixed Qty + (Qty x Unit Qty). If Round is checked, it is rounded up to a whole number.
3. If the Total Qty is less than the Min Qty, it is raised to the Min Qty (and rounded up if Round is checked). The difference is the minimum quantity adjustment.
4. Calculate the Subtotal Cost: ((Fixed Qty + minimum quantity adjustment) x Unit Cost) + (Qty x Unit Qty x Unit Cost).
5. Calculate the Adjust Amt: Subtotal Cost x Adj% / 100.
6. Calculate the Total Fixed: (Fixed Qty + minimum quantity adjustment) x Unit Cost, increased by the Adj%.
7. Calculate the Total Cost: Total Fixed + (Qty x Unit Qty x Unit Cost, increased by the Adj%).
8. Calculate the Total Unit: (Total Cost − Total Fixed) / Job Qty.
9. For a fixed quantity type, the whole Total Cost becomes the Total Fixed (Total Unit 0). For the plate and pass quantity types, the Total Unit is added to the Total Fixed.

Total the Routing Items#

1. Calculate the Total Hrs: Setup Hrs + (Qty / Speed (quantity per hour)). Without a speed, the Total Hrs is the Setup Hrs.
2. Calculate the Total Unit: (Rate per hour / Speed) + Unit Cost. Without a speed: Rate + Unit Cost.
3. Calculate the Total Fixed: (Setup Hrs x Rate) + Fixed Cost. The Fixed Cost is entered, not calculated.
4. Calculate the Subtotal Cost: Total Fixed + (Qty x Total Unit).
5. Calculate the Adjust Amt: Subtotal Cost x Adj% / 100.
6. Increase the Total Fixed and the Total Unit by the Adj%, and calculate the Total Cost: Total Fixed + (Qty x Total Unit).
7. If the Total Cost is less than the Min Cost, the difference is added to the Total Fixed and the Total Cost becomes the Min Cost.
8. Calculate the Total Unit per job quantity: (Total Cost − Total Fixed) / Job Qty.
9. For a fixed quantity type, the whole Total Cost becomes the Total Fixed (Total Unit 0). For the plate and pass quantity types, the Total Unit is added to the Total Fixed.

Total the Quantities and Prices#

1. Positive Item Adjustments override the Overall Adjustment.
2. BOM Sum Total Cost where Adj% <= 0.
3. Calculate the Adjustment amount.