Work orders are executed, and the customer is billed at sales prices. There are no monthly fees, but because this is a returning customer you will sell parts at 5% discount of our list price. Exceptions are made for parts with very low margin, they still get the 5%, but the sales price will be specified on the contract to compensate for the low margin. Also work orders transactions that have no predefined sales price are still billed at cost plus a markup of 10% for all costs except for tool costs which is at 5% with a minimum of $2.50 per transaction.
Note that you cannot make an exception for materials now, because materials are either sold or not. For work orders you can do both on the same contract, sell if it references a service problem code, a PM schedule, or a standard WO, at cost if it does not. For a work order activity, you can do both as well, sell if it references a Task, at cost if it does not reference a Task. A material does not have this distinction.
For this contract, an invoice is created once a month and the first $250 dollars spent on Sales Transactions in that period are free. Because it is not sure that work must be performed, but you must be prepared to react quickly when needed, the customer has agreed pay a fixed monthly contribution of $125, regardless of the fact any work is done.
Define this contract as follows, but take into consideration that other ways may lead to the same result:
Charge Category |
Subcategory |
Charge Level |
Invoice |
Rate |
Adjustments |
||
---|---|---|---|---|---|---|---|
% Before |
Min. |
Free Up To |
|||||
WO Charges |
All Costs |
Transaction |
Yes |
10 |
|||
WO Charges |
Tool Costs |
Transaction |
Yes |
5 |
$2.50 |
||
Sales Trans. |
All Entities |
Transaction |
Yes |
||||
Sales Trans. |
Parts |
Transaction |
Yes |
-5 |
|||
Sales Trans. |
All Entities |
Charge Cat. |
Yes |
$250 |
|||
Usage Charges |
Monthly Costs |
Transaction |
Yes |
$125 |
Sales Prices:
Entity |
Code |
List Price |
Contract Price |
---|---|---|---|
Service problem Code |
SPC 1 |
$1500 |
|
PM Schedules |
PM 1 |
$750 |
|
Standard WO |
Std. WO 1 |
$600 |
|
Task |
Task 1 |
$150 |
|
Task |
Task 2 |
$145 |
|
Part |
Part 1 |
$0.25 |
$1 |
Part |
Part 2 |
$100 |
The following work is executed over the last month:
WO |
Type |
Act. |
Task |
Cost Type |
Trans. Qty. |
Trans. Price |
Invoice |
---|---|---|---|---|---|---|---|
10000 |
SPC 1 |
01 |
Task 1 |
Part 1 |
10 |
$0.20 |
$1500 |
Part 2 |
2 |
$90 |
|||||
Labor |
4 |
$100 |
|||||
Tool Costs |
8 |
$25 |
|||||
10001 |
PM 1 |
01 |
Task 1 |
Part 1 |
10 |
$0.20 |
$750 |
Part 2 |
2 |
$90 |
|||||
02 |
None |
Labor |
4 |
$100 |
|||
Tool Costs |
8 |
$25 |
|||||
10002 |
Std. WO 1 |
01 |
Task 1 |
Part 1 |
10 |
$0.20 |
$600 |
Part 2 |
2 |
$90 |
|||||
02 |
None |
Labor |
4 |
$100 |
|||
Tool Costs |
8 |
$25 |
|||||
10003 |
None |
01 |
Task 1 |
Part 1 |
10 |
$0.20 |
$150 |
Part 2 |
2 |
$90 |
|||||
02 |
Task 2 |
Labor |
4 |
$100 |
$145 |
||
Tool Costs |
8 |
$25 |
|||||
10004 |
None |
01 |
Task 1 |
Part 1 |
10 |
$0.20 |
$150 |
02 |
Task 2 |
Part 2 |
2 |
$90 |
$145 |
||
03 |
None |
Part 1 |
10 |
$0.20 |
$9.50 |
||
Part 2 |
2 |
$90 |
$190 |
||||
Labor |
4 |
$100 |
$440 |
||||
Tool Costs |
8 |
$25 |
$210 |
||||
Tool Costs |
2 |
$1 |
$2.50 |
||||
Total |
Sales |
$3639.50 |
|||||
Total |
WO Charge |
$652.50 |
Invoice this month will be $4167.00:
Charge Category |
Subcategory |
Charge Level |
Amount |
---|---|---|---|
Sales Transaction |
All |
Charge Category |
$3639.50 - $250 = $3389.50 |
WO Charges |
All |
Charge Category |
$652.50 |
Usage Charges |
All |
Charge Category |
$125 |
Sales Transaction |
Serv. Problem Code |
Charge Subcategory |
$1500 |
Sales Transaction |
PM Schedule |
Charge Subcategory |
$750 |
Sales Transaction |
Standard WO |
Charge Subcategory |
$600 |
Sales Transaction |
Tasks |
Charge Subcategory |
$590 |
Sales Transaction |
Parts |
Charge Subcategory |
$199.50 |
WO Charges |
Labor |
Charge Subcategory |
$440 |
WO Charges |
Tool Costs |
Charge Subcategory |
$212.50 |
Usage Charges |
Monthly |
Charge Subcategory |
$125 |