For a project change order 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 Project management and accounting -> Common -> Change orders -> Project change orders.
2.	On the Project change orders list page, select a project change order with status Created.
3.	On the Action pane, on the Quotation tab, in the Control group, click Quotation statement.
4.	On the Quotation statement form, on the Work breakdown structure pane, select a project line of type Fixed price.
5.	If you want to simulate the contract total, on the Margin/Markup simulator pane, select Margin or Markup.
	Note: If no simulation is required, proceed with step 8.
6.	Enter the relevant margin or markup percentages for items, hours, and expenses and click Simulate.
7.	If you are satisfied with the suggested sales price, click Transfer. As a result, the suggested sales price is copied to the Contract total of the selected project line.
	Note: You can repeat steps 4-7 for several project lines.
8.	On the Work breakdown structure pane, you can manually enter or change the Contract total for project lines of type Fixed price.
	Note: You can repeat this step for several project lines.
9.	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. You can repeat steps 4-8. Cancel - As a result, the Quotation statement form is closed, and the changed-but-not-yet-saved contract totals are reset to the original values.
10.	If you are satisfied with the result, you can click: Save - As a result, the changed contract totals are saved. Save and close - As a result, the Quotation statement form is closed, and the changed contract totals are saved. As a result, for each project line for which you saved a contract total, an on-account line with the contract total is created in the Estimated costs and revenue.

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.