Costs and Prices

In QuickEasy BOS, the following terms and definitions are used to calculate profitability:

• Selling Price - The Price that is charged to the Customer.

• Cost Price - This includes Materials, Outwork, Commissions and Services (Labour) - ie. all the direct and indirect costs.

• Direct Cost Price - This includes Materials, Outwork and Commissions - ie. costs that are directly incurred only.

• Gross Profit - This is calculated as Selling Price less Cost Price.

• Value Added - This is calculated as Selling Price less the Direct Cost Price.

You are able to record the Cost Price and Direct Cost Price of Services and Materials, which will in turn be recorded in Quotations and Sales Orders to maintain a history of Value Added and Gross Profit.

Fixed Price and Unit Price

You can set the Selling Price, Cost Price and Direct Cost Price or of an item using both a Unit and a Fixed value. The Unit value will be multiplied with the Quantity and added to the Total, whereas the Fixed value is added to the Total once regardless of what the Quantity is. The Fixed value is generally used in manufacturing where a setup or make-ready applies. The Fixed and Unit values apply to the Selling Price, Cost Price and the Direct Cost Price.

Following is an example:

Example 1 - Die Cutting

Fixed Cost = R150 (ie. The cost for the make-ready, etc.)

Unit Cost = R0,50

The price for a Qty of 3,000 will therefore be: R150 + (R0.50 x 1,000) = R650