Billing Prices

This section provides information on the calculation of billing prices in the Job Cost module.

Activity Type	The cost price is found by the following order of priority:
Time	If the Use markup % for time activities system parameter is selected, the billing price for time activities is found in the same way as billing prices for internal amount activities. This is described later in this table under “Amount (internal expense)”. If the parameter is not selected, the billing price for time activities is found according to the following list of priorities. The “Standard billing price” is only found if the Use standard billing price for time activities system parameter is selected. If not selected, the registered billing price is used as standard billing price. The amount entered in the Billing Price, Currency field in the current job journal. Job specific price list. If the billing price is not found here: The cost price (calculated first) multiplied by the markup percentage from the job specific price list. Note that this is the only case where the billing price can be 0 if the markup percentage is -100. If the billing price cannot be derived in this way: The general job price list specified for billing prices for the job in the Job Price Information window. If the Prioritize Markup Percentage from Job Price Lists parameter is selected, the cost price (calculated first) multiplied by the markup percentage from the general job price list. If the billing price is not found here: If the hourly rate is set to “By Employee” in the System Information window in the Set-Up module: The billing price specified for the employee in the Employees window in the Set-Up module or, if an employee category has been specified instead of an employee, the billing price from the category in question. If hourly rates are set to “By Employee”, and if no billing price but an item number has been specified on the Employee Information Card (does not apply to standard billing prices): The current item’s sales price specified on the current job’s item price list for sales (selected in the Job Price Information window). And if no sales price has been specified on the item price list: The current item’s cost price multiplied by the item’s profit margin percentage as specified on the item’s information card. If hourly rates are set to “By Activity” in the System Information window in the Set-Up module: The billing price specified for the activity in the Activities window. If hourly rates are set to “By Activity” and no billing price but an item number has been specified on the Activity Information Card (does not apply to standard billing prices): The current item’s sales price as specified on the current job’s item price list for sales (selected in the Job Price Information window). And if no sales price is specified on the item price list: The current item’s cost price multiplied by the item’s markup percentage as specified on the item’s information card. If hourly rates are set to “Employee Priority” in the System Information window in the Set-Up module: The method described under “By Employee”. The method described under “By Activity”. If hourly rates are set to “By Activity” in the System Information window in the Set-Up module: The method described under “By Activity”. The method described under “By Employee”.
Amount (internal expense)	The “Standard billing price” is only found if the Use standard billing price for amount activities system parameter is selected. If not selected, the registered billing price is used as standard billing price. The amount entered in the Billing Price, Currency field in the current job journal. Job specific price list. If the billing price is not found here: The cost price (calculated first) multiplied by the markup percentage from the job specific price list. Note that this is the only case where the billing price can be “0” if the markup percentage is “-100”. If the billing price cannot be derived in this way: The general job price list specified for billing prices for the job in the Job Price Information window. If the Prioritize Markup Percentage from Job Price Lists parameter is selected, the cost price (calculated first) multiplied by the markup percentage from the general job price list. The billing price specified for the activity in the Activities window. If no billing price but an item number has been specified on the activity’s information card (does not apply to standard billing prices): The current item’s sales price specified on the current job’s item price list for sales (selected in the Job Price Information window). If no sales price has been specified in the item price list: The current item’s cost price multiplied by the item’s markup percentage as specified on the item’s information card. If the billing price cannot be derived in this way: The cost price (as derived in the table above) multiplied by the markup percentage on the general job price list for sales. If a fixed profit margin is used for the job, the derived cost price is multiplied by the markup specified for the current activity in the Activities window. If no fixed profit margin is used on the job, the derived cost price is multiplied by the markup specified for the current activity in the Activities window. The billing price found is called the base price. Furthermore, Maconomy might regulate the base price as described above in the definition of “Base price and regulation”.
Amount (external expense)	The billing price for external expenses is calculated in the same way as for internal expenses except for the fact that the billing price cannot be entered directly. The billing price is often calculated based on a specified markup percentage.

Activity Type

The cost price is found by the following order of priority:

Time

If the Use markup % for time activities system parameter is selected, the billing price for time activities is found in the same way as billing prices for internal amount activities. This is described later in this table under “Amount (internal expense)”. If the parameter is not selected, the billing price for time activities is found according to the following list of priorities.

The “Standard billing price” is only found if the Use standard billing price for time activities system parameter is selected. If not selected, the registered billing price is used as standard billing price.

The amount entered in the Billing Price, Currency field in the current job journal.
Job specific price list.
If the billing price is not found here:
The cost price (calculated first) multiplied by the markup percentage from the job specific price list. Note that this is the only case where the billing price can be 0 if the markup percentage is -100.
If the billing price cannot be derived in this way:
The general job price list specified for billing prices for the job in the Job Price Information window. If the Prioritize Markup Percentage from Job Price Lists parameter is selected, the cost price (calculated first) multiplied by the markup percentage from the general job price list.
If the billing price is not found here:

If the hourly rate is set to “By Employee” in the System Information window in the Set-Up module:
The billing price specified for the employee in the Employees window in the Set-Up module or, if an employee category has been specified instead of an employee, the billing price from the category in question.
If hourly rates are set to “By Employee”, and if no billing price but an item number has been specified on the Employee Information Card (does not apply to standard billing prices):
The current item’s sales price specified on the current job’s item price list for sales (selected in the Job Price Information window).
And if no sales price has been specified on the item price list:
The current item’s cost price multiplied by the item’s profit margin percentage as specified on the item’s information card.
If hourly rates are set to “By Activity” in the System Information window in the Set-Up module:
The billing price specified for the activity in the Activities window.
If hourly rates are set to “By Activity” and no billing price but an item number has been specified on the Activity Information Card (does not apply to standard billing prices):
The current item’s sales price as specified on the current job’s item price list for sales (selected in the Job Price Information window).
And if no sales price is specified on the item price list:
The current item’s cost price multiplied by the item’s markup percentage as specified on the item’s information card.
If hourly rates are set to “Employee Priority” in the System Information window in the Set-Up module:
The method described under “By Employee”.
The method described under “By Activity”.
If hourly rates are set to “By Activity” in the System Information window in the Set-Up module:
The method described under “By Activity”.
The method described under “By Employee”.

Amount (internal expense)

The “Standard billing price” is only found if the Use standard billing price for amount activities system parameter is selected. If not selected, the registered billing price is used as standard billing price.

The amount entered in the Billing Price, Currency field in the current job journal.
Job specific price list.
If the billing price is not found here:
The cost price (calculated first) multiplied by the markup percentage from the job specific price list. Note that this is the only case where the billing price can be “0” if the markup percentage is “-100”.
If the billing price cannot be derived in this way:
The general job price list specified for billing prices for the job in the Job Price Information window. If the Prioritize Markup Percentage from Job Price Lists parameter is selected, the cost price (calculated first) multiplied by the markup percentage from the general job price list.
The billing price specified for the activity in the Activities window.
If no billing price but an item number has been specified on the activity’s information card (does not apply to standard billing prices):
The current item’s sales price specified on the current job’s item price list for sales (selected in the Job Price Information window).
If no sales price has been specified in the item price list:
The current item’s cost price multiplied by the item’s markup percentage as specified on the item’s information card.
If the billing price cannot be derived in this way:
The cost price (as derived in the table above) multiplied by the markup percentage on the general job price list for sales.
If a fixed profit margin is used for the job, the derived cost price is multiplied by the markup specified for the current activity in the Activities window.
If no fixed profit margin is used on the job, the derived cost price is multiplied by the markup specified for the current activity in the Activities window.
The billing price found is called the base price. Furthermore, Maconomy might regulate the base price as described above in the definition of “Base price and regulation”.

Amount (external expense)

The billing price for external expenses is calculated in the same way as for internal expenses except for the fact that the billing price cannot be entered directly. The billing price is often calculated based on a specified markup percentage.

Maconomy Information Center

Billing Prices