The Factor value field is used in the calculation of an ‘additional’ cost to be added at a line item (component) level in the costing of an Estimate. This factor value is used in conjunction with the Factor value table, as maintained at an Inventory item (component) level, to calculate the additional cost when calculating the Estimate cost. This additional cost is then saved as part of the Estimate details.
Example – Using a Factor:
Where an Estimate has been created for a particular project outside the normal Estimate area, and an additional travelling and cartage factor (e.g. Cost per kilometre) needs to be added to the standard Estimate cost, a ‘factor’ can be applied to the Estimate which will calculate the additional cost of each line item and thus the total cost to the client.
The factor table is maintained on the inventory item level and contains the following information:
Up to Threshold – The threshold levels assigned to an inventory item
Value – The value to be applied
Example Factor table for an item:
|
Up to Threshold |
Value |
|
100 |
$0.10 |
|
200 |
$0.20 |
|
300 |
$0.30 |
In this example, the Up to Threshold, represents distance (Kilometres) and the Value represents Cents per KM for that threshold range
Calculations of the Factor value for each Estimate item
The process will select the details from the Factor Table for an item (component) and where the Factor field is less than the Up to Threshold, the calculated Factor value for the item is set to the Value on the table multiplied by the Factor field.
In this Example if the FACTOR field was say, 230 representing the travelling distance, then the additional cost on the example line item would be:
230 X $0.30 = $69
In this Example if the FACTOR field was say, 50 representing the travelling distance, then the additional cost on the example line item would be:
50 X $0.10 = $5
Plus 50 X $0.20 = $10
Plus 50 X $0.30 = $15 total $30