Price Types

Another important factor in the price calculation is the question of the right price type.

You can work with three types:

• Cost price: The expense incurred in connection with the current entry in, for example, the job journal or a time sheet for the responsible company; for example, the expense of an employee’s salary.
• Intercompany price: The price that a company in Maconomy charges for delivering a service to another company in Maconomy’s multi-company model. Note that the responsible company uses the intercompany price of the executing company as the cost price.
• Billing price, including profit margin calculation: The price that the responsible company charges for the service rendered. The price can be a fixed price or it can be a multiplication of the cost price and a profit margin percentage. Note that for intercompany transactions, the executing company uses the intercompany price as the billing price.

Maconomy distinguishes between three types of billing prices:

• Registered billing price: This is the billing price determined by the price structure in Maconomy (as described below). The registered price may be adjusted at the time of registration. This is also called the contracted billing price.
• Invoiced billing price: This is the price which actually appears on the invoice to the client. This billing price is based on the registered billing price, but may be written up or down at the time of invoicing.
• Standard billing price: In order to be able to create performance analyses, a standard billing price can be set up as a performance target. The standard billing price is recorded on every job entry, and cannot be changed. Using reports, you can compare the standard billing price with the registered billing price of, for example, a department over a period of time to see if the actual performance measures up to the target set for that department. The standard billing price is found in the same way as the registered billing price, with one exception: the price cannot be found using the item price list system. Furthermore, the application of standard billing price to job entries depends on the selection of the Use standard billing price for time activities and Use standard billing price for amount activities system parameters. If either (or both) these parameters have been deselected, the registered billing price is used as standard billing price on each job entry.