Setup for Subcontracting / Outwork

Summary

When requesting a price from a subcontracting vendor, you typically receive a base price for a specified quantity and an additional price per 1000 pieces ("price per M"). Sometimes, a fixed fee is also added.

Best Practice Setup

With a well-configured setup, you can calculate the subcontracting sales price for any requested quantity automatically.

Example

For a subcontracting job of 2000 brochures, the offered pricing is:

• Fixed Fee: 20 EUR
• Offered Price for 2000 Brochures: 100 EUR
• Offered Price for Additional 1000 Brochures: 30 EUR

Calculation for Different Quantities

• For 2500 pcs: The system calculates the price based on the fixed fee and the offered price for additional quantities.

• If the job quantity is increased to 3000 pcs: The new result is calculated automatically.

The additional price per 1000 pieces is dynamically calculated based on the job quantity, eliminating the need for manual adjustments.

Calculation Unit Setup

The setup for calculation detail lines 2 and 3 involves:

• Line 2: Uses a price list to determine the base price. This price list is set to "Total Amount" for line 2.
• Line 3: Calculates the additional price per 1000 pieces based on the rate provided.

Please pay attention on those topics!

Item No. Price List and Price List look-up Formula Class Formula for line 3

Item Setup for Subcontracting / Outwork

• Item No.: "OUTSOURCE" is configured with a price unit of 1000 pcs, which is used to apply additional rates per 1000 pcs.
• Price Calculated from: For line 3, the field is set to "Total Amount". For line 2, it uses a dummy price list to set the "Price Calculated from" to "Total Amount".

Price List and Price List Look-Up

• Price List Lookup: Set to "Cost Prices" to use additional rates for calculating the sale price.

Possible options: Choose Cost Price – sale price is then calculated with the given margins of the Additional Rates setup.

Setup for "Outsource Startup"

If a fixed startup fee is required, set up as follows:

• Item No.: "OUTSOURCESTART" with a price unit of pcs.
• Quantity: Set to 1 (not required but simplifies entry).

The "OUTSOURCESTART" item card is similar to the "OUTSOURCE" item but with Price Unit set to pcs.

Required Calculation Formulas

Formula 1

• Purpose: Read the quantity using the Formula Class Filter “SUBC_TOTAL”.

Formula 2

• Purpose: Calculate finishing quantity (Formula 420) minus the quantity from Formula 1.