About Agreement Service Budgets

You can set up budget information for an agreement service by entering summarized or detailed cost estimates.

There are two methods for setting up budget information for an agreement service.

  • Summarized Cost Estimates - These are entered in SM Service Detail (accessed by clicking the Detail button in the Budget section of SM Service).
  • Detailed Cost Estimates - These are entered in SM Service using the Material, Equipment, Labor, and Misc tabs.

The system determines which set of cost estimates to use when calculating the budget totals (estimated Labor Hours, Cost Total, Price Total, and Profit) depending on how you set the Derive check box for the agreement service (in the Budget section of SM Service, Info tab).

Detailed Cost Estimates

If you prefer to use detailed cost estimates to derive the estimated budget totals, select the Derive check box. The system will sum the labor hours from all entries on the Labor tab to determine the estimated Labor Hours for the agreement service. It will then sum the detailed cost estimates to determine the estimated budget totals. The Pricing method defined for the agreement service determines how the budget totals are calculated:

  • Included in Agreement - For these services, the system sums the cost totals from all tabs to derive the budget Cost Total. However, since these services are included in the agreement price, no Price Total or Profit will be calculated.
  • Time of Service, Flat Price and Periodic - For these services, the system sums the cost totals from all tabs to derive the budget Cost Total. It then uses the Price entered for the agreement service as the Price Total. The Profit is then calculated as the Price Total less the Cost Total.
  • Time of Service, Rate Template - For these services, the systems sums the cost totals and billable totals from all tabs to derive the budget Cost Total and Price Total. The Profit is then calculated as the Price Total less the Cost Total.

Summarized Cost Estimates

If you do not select the Derive check box, you can use the SM Service Detail form to enter estimated labor hours, and summarized cost estimates for labor, materials, equipment, subcontracts, and miscellaneous expenses. The system will then use the summarized cost estimates to determine the estimated budget totals. The Pricing method defined for the agreement services determines how the budget totals are calculated:

  • Included in Agreement - For these services, the system uses the estimated labor hours and total cost estimates to derive the budget Labor Hours and Cost Total, respectively. However, since these services are included in the agreement price, no Price Total or Profit will be calculated.
  • Time of Service, Flat Rate and Periodic - For these services, the system uses the estimated labor hours and total cost estimates to derive the budget Labor Hours and Cost Total, respectively. It then uses the Price entered for the agreement service as the Price Total. The Profit is then calculated as the Price Total less the Cost Total.
  • Time of Service, Rate Template - For these services, the SM Service Detail form provides additional fields for entering markup rates for cost estimates, which are then used to calculate pricing estimates. The system sums the cost estimates and pricing estimates to determine the estimated Cost Total and Price Total (respectively) for the agreement service. The Profit is then calculated as the Price Total less the Cost Total.
Note: When you create a work order from the agreement service (via SM Generate PM Work Orders), the system updates the budget totals for the work order from the agreement service. If you selected the Derived check box on the agreement service, but also entered summarized cost estimates, the system will populate the summarized cost estimates on the work order scope using the detailed cost estimates. The summarized cost estimates on the agreement service will be left intact.

Once you enter your service budgets, the system sums the cost estimates for all services and displays them by call type and call type category in the Service Budget column of the Budget tab in SM Agreements. Additionally, the system will sum all pricing estimates and display the total value in the Est. Service Revenue field for the agreement (next to the agreement price).