1. To-Increase Dynamics 365 for Finance & Operations
  2. Advanced project management
  3. Working with Advanced project management
  4. Create and manage project quotations

Define project quotation price

In Advanced project management, you can use several ways to define the sales price for a project quotation.

You can:

  • Use the project price setup.
  • Define specific prices for project quotations.
  • Define specific prices for project lines in the work breakdowns structure of a project quotation.
  • Define contract totals for work breakdown structure project lines of type Fixed price.

You can define the default set up for pricing priority on the Advanced project management parameters.

You can change it for each project quotation. You can also define prices during the design of the work breakdown structure.


Sales representative Sales representative Start Start Set up sales prices

Set up sales prices for project categories

Set up default sales prices for hour, expense, equipment, fee, and subscription project categories.

 Set up project quotation prices Set up project quotation prices In project quotations, the actual project sales price setup for hours, expenses, and fees is used. However, you can define project quotation-specific price setup for specific categories. These prices are applicable to the whole project quotation. However, if you have defined a specific price for a sub-project, the project quotation price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project. If you transfer a project quotation to a project, for each project quotation-specific price setup, a project-specific line is added to the related project sales price setup. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, mark the selected row. 4. On the Action Pane, click Project quotation. 5. Click Quotation Margin. 6. Click Get actual prices. 7. Click OK to get the latest prices from the project price set up. Note: On the Get actual prices dialog, if the Overwrite check box is: - Cleared, only the prices are updated for which the Override check box is cleared as well. - Selected, all prices are updated. 8. In the list, find and select the desired record. 9. Make the required changes to the prices. You can change the Sales price model and the Pricing. In the Pricing field, enter a number. Note: If you make a change, automatically these check boxes are selected: - Manual override: indicates that the price is changed. - Recalculate: the price is changed, but not yet applied to the work breakdown structure of the project quotation. 10. Click Calculate all. Note: If you change the price on a single line, you can click Calculate instead of Calculate all. 11. Click OK. Note: As a result: - The changed price setup is updated on each project in the work breakdown structure. - Prices are recalculated for the estimate lines of the tasks in the work breakdown structure. Set up sub-project prices Set up sub-project prices On a project quotation work breakdown structure, you can use projects in the hierarchy. The default sales prices for these projects are defined by the sales prices in the quotation margin. However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project. However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable. Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.If you transfer a project quotation to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, click the link in the selected row. 4. Click Advanced WBS. 5. Click Edit. 6. Click Quotation statement. 7. Click Get actual prices. 8. Click OK to get the latest prices from the project price setup. Note: On the Get actual prices dialog, if the Overwrite toggle button is: - Cleared, only the prices are updated for which the Override check box is cleared as well. - Selected, all prices are updated. 9. Select the root project node. 10. Select any category under the project quotation prices list for which you want to change the price. 11. In the Line pricing field, enter a number. Define project quotation contract totals Define project quotation contract totals For a project quotation work breakdown structure, for all project lines of type Fixed price, you define the Contract total. You can do so on the Quotation statement form in two ways:Simulate and transfer the contract total.Manually enter or change the contract total.To simulate the contract total, you can use:Margin The sales price minus the cost price (also known as gross margin).Formula: sales price - cost price / sales price * 100%Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%MarkupThe amount by which the cost price is increased to derive the sales price.Formula: sales price - cost price / cost price * 100%Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, find and select the desired record. 4. Click Advanced WBS. 5. Click Edit. 6. Click Quotation statement. 7. In the list, find and select the desired record. 8. If you want to simulate the contract total, on the Margin/Markup simulator pane, select Margin % or Markup %. Click the Margin/Markup Simulator tab. Note: If no simulation is required, on the Work breakdown structure pane, you can manually enter or change the Contract total for project lines of type Fixed price. 9. Enter the relevant margin or markup percentages for items, hours, and expenses. 10. Click Simulate. 11. If you are satisfied with the suggested sales price, you can transfer it to the Contract total of the selected project line. Click Transfer. Note: You can repeat steps 9-11 for several project lines. 12. If you are satisfied with the result, click Save & Close. Note: If you are not satisfied with the result, you can click: - Reset: As a result, the changed-but-not-yet-saved contract totals are reset to the original values. - Cancel: As a result, the Quotation statement page is closed, and the changed-but-not-yet-saved contract totals are reset to the original values. Notes You can simulate the contract total for project lines of each type. However, you can only transfer the suggested sales price for fixed price project lines to which progress billing doesn't apply. End End Specific pricing required for project quotation? Specific pricing required for project quotation? Specific pricing required for sub-projects? Specific pricing required for sub-projects? Fixed-price project? Fixed-price project? Yes No Yes No Yes No

Activities

Name Responsible Description

Set up sales prices

Sales representative

Set up default sales prices for hour, expense, equipment, fee, and subscription project categories.

Set up project quotation prices

Sales representative

In project quotations, the actual project sales price setup for hours, expenses, and fees is used.

However, you can define project quotation-specific price setup for specific categories.

These prices are applicable to the whole project quotation.

However, if you have defined a specific price for a sub-project, the project quotation price isn't applicable.

Instead, the sub-project-specific price is applicable to the sub-project and all lower work breakdown structure levels under the sub-project.

If you transfer a project quotation to a project, for each project quotation-specific price setup, a project-specific line is added to the related project sales price setup.

Set up sub-project prices

Sales representative

On a project quotation work breakdown structure, you can use projects in the hierarchy.

The default sales prices for these projects are defined by the sales prices in the quotation margin.

However, for each project in the work breakdown structure, you can also define a specific sales price for specific categories.

These project-specific prices are applicable to the project and all lower work breakdown structure levels under the project.

However, if you have defined a specific price for a sub-project, the project-specific price isn't applicable.

Instead, the sub-project-specific price is applicable to the sub-project and all lower WBS levels under the sub-project.

If you transfer a project quotation to a project, for each (sub-)project-specific price setup, a (sub-)project-specific line is added to the related project sales price setup.

Define project quotation contract totals

Sales representative

For a project quotation work breakdown structure, for all project lines of type Fixed price, you define the Contract total.

You can do so on the Quotation statement form in two ways:

  • Simulate and transfer the contract total.
  • Manually enter or change the contract total.

To simulate the contract total, you can use:

  • Margin
    • The sales price minus the cost price (also known as gross margin).
    • Formula: sales price - cost price / sales price * 100%
    • Example: if a sales price is $100 and the cost price $70, the margin is $30. Or, stated as a percentage, the margin percentage is 30%

  • Markup
    • The amount by which the cost price is increased to derive the sales price.
    • Formula: sales price - cost price / cost price * 100%
    • Example: a markup of $30 from the $70 cost price yields the $100 sales price. Or, stated as a percentage, the markup percentage is 42.9%.

See also

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