Material Price for Parts

Material Price for Parts

Material Price for Parts

How does SecturaFAB calculate how much do I change for material.

Material Cost

The weight or area of a part is used to determine the material cost portion of the line-item cost.

The rectangular weight of a part will be used if the part is not nested, but if a part is nested with either a single part nest or a multi part nest a nested weight will be calculated and the nested weight of the part will be used for material cost calculations.

Unit Cost

Unit Cost = Part Weight * Material Cost

Example

Material Cost = $0.75 per pound

Weight = 25 pounds

Unit Cost = 25 * $0.75 = $18.75

Unit Price

The Profit Model setting will determine the how the Material Price is calculated.

Margin

If the Profit Model is set to margin, then the Material Price will be calculated as follows.

Unit Price = Unit Cost / (1 – Margin %)

Example

Margin = 15%

Unit Cost = $18.75

Unit Price = $18.75 / (1 – 0.15) = $18.75 / 0.85 = $22.0588

Markup

If the Profit Model is set to Markup, then the Material Price will be calculated as follows.

Unit Price = Unit Cost *(1 + Markup %)

Example

Markup = 15%

Unit Cost = $18.75

Unit Price = $18.75* (1 + 0.15) = $18.75 * 1.15 = $21.5625


    • Related Articles

    • Margin vs Markup

      Margin vs Markup The difference between margin and markup is that margin refers to sales minus the cost of goods sold (COGS), while markup refers to the amount by which the cost price of a product is increased to determine the selling price.   Margin ...

    • Margin

      Setup > Preferences & Costs> Quote Details > Margin Default Setting Set the default Margin or Markup for calculating the price for a quote or order item. The Margin or Markup is applied to a quote after the Material and Operation Costs have been ...

    • Material Margin

      Setup > Preferences & Costs >Quote Details >Material Margin Default Setting Set the default Material Margin for calculating the price for a quote or order item. Note: Depending on the Profit Model this will be a Margin or Markup value. When ...

    • Cost Model

      Setup > Preferences & Costs > Quote Details > Cost Model Different costing models can be used to calculate the quote labor costs.  Options : Labor Rate or Cost with Margin Labor Rate Whit the Labor Rate option selected the unit cost and unit price of ...

    • Price books

      Price books Price books allows you to change the cost or price of an item based on location or a custom rule. A quote has a price book and by changing the price book property of the quote the costs of the quote will change. This is often used where ...