About Work Order Quote Scope Budgets

You can set up budget information for a work order quote scope by entering cost estimates in the SM Work Order Quotes form.

There are two methods for setting up cost estimates for a work order quote scope:

  • Summarized Cost Estimates - These are entered in SM WO Quote Cost Detail (accessed by clicking the Detail button in the Budget section of SM Work Order Quotes).

  • Detailed Cost Estimates - These are entered in SM Work Order Quotes 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) based on how you set the Derived check box, as detailed below.

Detailed Cost Estimates

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

  • Flat Price - For these scopes, the system sums the cost totals from all tabs to derive the budget Cost Total. It then uses the Price entered for the quote scope as the Price Total. The Est Profit is then calculated as the Price Total less the Cost Total.
  • Time and Material - For these scopes, the systems sums the cost totals and billable totals from all tabs to derive the budget Cost Total and Price Total. The Est 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 WO Quote Cost Detail form to enter estimated labor hours and summarized cost estimates for labor, materials, equipment, subcontracts, and miscellaneous expenses. The system uses the summarized cost estimates to determine the estimated budget totals. The Pricing method defined for the quote scope determines how the budget totals are calculated:

  • Flat Price - For these scopes, 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 quote scope as the Price Total. The Profit is then calculated as the Price Total less the Cost Total.
  • Time and Material - For these scopes, the SM WO Quote Cost 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 quote scope. The Profit is then calculated as the Price Total less the Cost Total.
Note: When you create a work order from the quote, the system updates the budget totals for the work order from the quote scope. If you selected the Derived check box on the quote scope, 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 quote scope are left intact.

For information about entering detailed cost estimates (required resources) and summarized cost estimates, click on the links below.