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%.

Standard 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.