Customer Pricing Agreement screen

Use the Customer Pricing Agreement screen to maintain customer pricing agreements for a customer classification. A customer pricing agreement is a contract or commitment for a specific agreed-upon price for a fixed time period. You can make a pricing agreement as specific or general as you need. For example, you can create a pricing agreement for a specific customer and project or you can create an agreement that applies to all customers in the classification. You can even create pricing agreements at the item level, if needed.

ProContractor calculates prices based on the price type selected.

Here a just a few examples of what you can do with pricing agreements.

Example 1: Percent Mark-up of Cost

When you select Percent Mark-up of Cost, ProContractor calculates overhead and profit and adds the amounts to the cost.

ProContractor uses the last cost found for the item which could be

  • Last Cost from the catalog item

  • Cost from a vendor invoice line (which overrides the last cost of the catalog item)

  • Labor cost from line posted from payroll

Let's say you want to create a pricing agreement using Percent Mark-up of Cost using the following setup:

Profit % = 8.0

Overhead % = 10.0

Base Profit On = Cost Only

Let's say a customer then buys an item that uses this pricing agreement and has a cost of $20. ProContractor would calculate the price of the item as follows:

Price = Cost + (Cost * (Overhead % / 100)) + (Cost * (Profit % / 100))

Price = 20 + (20 * (10.0 / 100)) + (20 * (8.0 / 100)) = 20 + 2 + 1.6 = $23.60

If you selected to base profit on Cost Plus Overhead, ProContractor would calculate the price as follows:

Price = Cost + (Cost * (Overhead % / 100)) + ((Cost + Calculated Overhead Amount) * (Profit % / 100))

Price = 20 + (20 * (10.0 / 100)) + (20 +(20 * (10.0 / 100)) * (8.0 / 100)) = 20 + 2 + 1.76 = $23.76

Example 2: Percent Off List Price

When you select Percent Off List Price, ProContractor calculates the price based on the unit price of the catalog item or pay class and subtracts the percentage of the discount. If the item is not a catalog item or labor line, the unit price defaults to 0.

Let's say you want to create a pricing agreement using Percent Off List Price using the following setup:

Discount % = 15.0

Let's say a customer then buys an item that uses this pricing agreement and has a unit price of $20. ProContractor would calculate the price of the item as follows:

Price = Unit Price - (Unit Price * (Discount % / 100))

Price = 20 - (20 * (15.0 / 100)) = $17

Example 3: Standard Billing Price

When you select Standard Billing Price, ProContractor uses the amount entered as the price.

Let's say you create a pricing agreement using Standard Billing Price and enter $20 in the amount field. When a customer buys an item that uses this pricing agreement, ProContractor uses $20 as the price. Because this pricing type uses an exact amount, you may want to specify this pricing agreement at the item level.

Opmerking: The Customer Pricing Agreement screen is a step in more than one setup process: