1. To-Increase Dynamics 365 for Finance & Operations
  2. Advanced project management
  3. Working with Advanced project management
  4. Create and manage project quotations
  5. Create work breakdown structure (WBS)

Use calculations in work breakdown structure

In a project quotation work breakdown structure, you can set prices on several levels. For example, project quotation, task, or estimate line.

The total sales value is calculated based on the quantity times the sales price.

If the project type is:

  • Time and material: sales prices have a direct consequence for the project invoicing.
  • Fixed price: sales prices are shown by the on-account transactions.

In construction projects, quantities are often calculated based on specific settings.

In Advanced project management, this is done with calculation groups.

Calculation groups define:

  • The formulas that are used to calculate the estimate line quantities for activities in the work breakdown structure.
  • Models with the default formulas for each transaction type.
  • The setup that is required for progress billing: a variable that is marked as scheduled unit. For progress billing, usually, the scheduled unit variable is a percentage.
  • The setup that is required for subcontracting: a variable that is marked as scheduled unit and for which the unit is defined as well.
    Reason: subcontracting uses purchase orders. On the purchase lines, a unit is required.
  • A cost price (expense) or sales price (expense) for a specific scheduled unit.


Project manager Project manager Start Start Define calculation settings on WBS task Define calculation settings on WBS task On each WBS task, you can define the applicable calculation settings. You can do so on the creation of the WBS task or on an existing WBS task. Procedure 1. Click Advanced project management. 2. Click Project quotation. 3. In the list, find and select the desired record. 4. In the list, click the link in the selected row. 5. Click Advanced WBS. 6. Click Edit. 7. In the list, find and select the desired record. 8. Click New task. 9. In the Task name field, type a value. 10. In the Category field, enter or select a value. 11. In the Effort in hours field, enter a number. 12. In the Cost code field, enter or select a value. 13. In the Role ID field, enter or select a value. 14. In the Group field, enter or select a value. 15. In the Model ID field, enter or select a value. 16. In the Schedule unit field, enter or select a value. 17. In the Forecast quantity field, enter a number. 18. Click OK. Note: You can also fill in the calculation fields on the WBS line once it is created. Enter calculation variable values for WBS task Enter calculation variable values for WBS task If you use a calculation group on a task, you must enter the values for the variables. 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. Select an activity for which calculation group is defined. 7. Click the Calculation tab. 8. Click the Estimated costs and revenues tab. 9. In the list, find and select the desired record. 10. Click the Calculation tab. 11. In the list, find and select the desired record. 12. In the Value field, enter a number. 13. Click Save. 14. You can do WBS calculation per line to see the values calculated based on the formula defined. Click Run WBS Calculation. Note: For the formula to work, both the calculation group and the model ID must be defined. 15. Click Run WBS Calculation. Change default formulas on WBS task Change default formulas on WBS task You can change the default formulas for a task. You can only change to formulas that are also defined for the same transaction type in the used calculation group. 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. In the list, find and select the desired record. 7. Click the Calculation tab. 8. In the Hour formula field, enter or select a value. Note: In the same way, you can create formulas for equipment, items, and expenses. Change default formula on estimate line Change default formula on estimate line You can change the default formulas for an estimate line. You can only change to formulas that are also defined for the same transaction type in the used calculation group. 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. In the list, find and select the desired record. 7. Click the Estimated costs and revenues tab. 8. In the list, mark the selected row. 9. In the Formula field, enter or select a value. Run WBS calculation Run WBS calculation If the setup of the work breakdown structure or a part of it is complete, run the WBS calculation.As a result, based on the calculation setup, this data is calculated.Estimate line quantities if impacted by formulas or variables.Totals for both cost values and sales values.Rates. 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 Run WBS Calculation. Notes If your WBS includes any estimates with additional costs, you can also run the WBS calculation for additional costs.If a WBS calculation is required, the relevant work breakdown structure line is marked with a red exclamation mark. Review bid value and markup

Review bid value and markup

You can review and modify the bid values and bid rates, as calculated by the WBS calculation. You can, for example, compare the bid value with the calculated markup.

You can change the bid value in these ways:

  • Add a contingency.
  • Apply an index.
  • Manually change the bid rate or bid value.

 End End Do you use a  calculation model? Do you use a  calculation model? Change default  formula? Change default  formula? Yes No WBS line Estimate line No

Activities

Name Responsible Description

Define calculation settings on WBS task

Project manager

On each WBS task, you can define the applicable calculation settings. You can do so on the creation of the WBS task or on an existing WBS task.

Enter calculation variable values for WBS task

Project manager

If you use a calculation group on a task, you must enter the values for the variables.

Change default formulas on WBS task

Project manager

You can change the default formulas for a task. You can only change to formulas that are also defined for the same transaction type in the used calculation group.

Change default formula on estimate line

Project manager

You can change the default formulas for an estimate line. You can only change to formulas that are also defined for the same transaction type in the used calculation group.

Run WBS calculation

Project manager

If the setup of the work breakdown structure or a part of it is complete, run the WBS calculation.

As a result, based on the calculation setup, this data is calculated.

  • Estimate line quantities if impacted by formulas or variables.
  • Totals for both cost values and sales values.
  • Rates.

Review bid value and markup

Project manager

You can review and modify the bid values and bid rates, as calculated by the WBS calculation. You can, for example, compare the bid value with the calculated markup.

You can change the bid value in these ways:

  • Add a contingency.
  • Apply an index.
  • Manually change the bid rate or bid value.

Review bid value and markup

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