Contents x
      Margin Pricing
        • Print
        Contents

        Margin Pricing

          • Print
          Article summary

          Margin Pricing

          The Work Order Margin is a financial display menu that will show monetary statistics about a work order. To access this page a user must have the "Write: Financials" permission set.

          Viewing Work Order Margins

          The hyperlink to view a Margin is available for every Work Order on the site. Click "View Margin" next to the title at the top of the Work Order details page.
          Feb-19-2024 15-37-21.gif

          Work Order Margin Report

          The list in the first display window on this page shows an outline of different costs attached to the Work Order:

          • Revenue
            • Income generated from sales or services before any costs or expenses are deducted
          • Part Labor Cost
            • The cost incurred by working the parts on this Work Order. This is collected from users starting and stopping timers on a job.
          • Station Labor Cost
            • This is the cost accrued from users clocked into a station that the parts transferred through
          • Station Operation Cost
            • The mechanical cost incurred by working the parts at each station
          • Inventory Cost
            • The cost incurred in inventory-related operations like material consumption.
          Deplete Inventory to a Station
          • Steelhead will allow users to deplete Inventory to a station
            • This allows one to track the active inventory in a station at a time
            • (ex. what acid was in tank 1 at time x)
          • Supports adding more (topping off) and draining and refilling a station with an inventory item
          • The “active” inventory in the station is all the depletions that have occurred in the station
          • Added some limited support for deleting inventory transactions
            • This will allow deleting accidental depletes to station and other inventory transactions.

          Note that this will only be used for margin calculation if predictive inventory is set for that part/inventory item.

          Deplete Inventory to Station Tutorial Video:

          • Outsourcing Cost
            • The cost incurred by outsourcing additional work for this work order.
          • Total Cost
            • The cumulative total of all costs for this work order.
          • Gross Profit
            • The difference between Revenue and the Total Cost
          • Margin
            • The gross margin is the gross profit divided by the revenue.
          Extra info for Stations used on Work Orders:

          To quickly see User and Timer info:

          1. Go to the work order itself and choose "View all Billed Hours"
          2. Sort labor hours by station to find out which of your workers had timers running and for how long
          3. Also, you can click on any of the id numbers under part transfers labor and it will pull up more information that may help you

          Margin Per Part Number

          This display window separates out the margin data by Part Numbers in the Work Order in a table with these columns:

          • Part Number
            • Identification number for the part in question
          • Count
            • Quantity of parts that are on this work order.
          • Sales Order Total $
            • The total value agreed upon for the sales order that contains this work order
          • Sales Order $ / Part
            • The amount of the Contract Total $ that will be divided out to each part on the sales order
          • Unit Labor Cost
            • Total labor cost divided by the total quantity of parts on the work order.
          • Part Labor Cost
            • Total labor cost of employees that have billable hours to that job.
          • Station Labor Cost
            • Total labor cost of employees that are clocked into a station while those parts transferred through.
          • Station Operation Cost
            • The cost incurred by operating the station while the parts were at the station.
          • Outsourcing Cost
            • The cost incurred by outsourcing parts.
          • Margin
            • This is the gross margin for this work order. This is the gross profit divided by the revenue.
          How to Set Pricing for a Part on a Sales Order

          If it is still to be determined how we should be pricing parts, there will be no sales order lines/line items for parts on the sales order. There are a few ways to set pricing.

          Different Methods:

          1. Manually create a Sales Order Line, add, line information then select +/- to assign to a Sales Order Part.
          2. Select "+ Part To Sales Order" to add a part to the sales order. From here either assign a quote line item, create a quote, or manually create a sales order line.
          3. Navigate to the invoicing screen and select "Un-Priced Parts". From here all parts without sales order lines/pricing will appear. Margin reports are available here to help with pricing parts.
          4. Create Quote/Pricing on the Sales Order screen itself. This will give the opportunity to quote all parts on the sales order. From here, the sales order lines will be generated based on quoted information.

          Related Tutorial Video:

          Cost Per Station (All Part Numbers)

          The final table shows pricing data for every station involved in processing the Work Order. Its columns are:

          • Station
          • Labor Rate(s)
            • Rate of labor pay for this station
            • You can edit labor rates if you go to the station itself.
          • Part Labor Hours
            • Amount of time spent treating one part in a process
          • Part Labor Cost
            • The cost incurred by paying workers to produce all parts of a specific part number at the station
          • Station Labor Cost
            • The total labor cost coming from users clocked into the station.
          • Operation Rate
            • Hourly rate of pay at the station
            • Not to be confused with Operator Rate, the hourly rate of pay for an operator across all stations
          • Station Dwell Time
            • The duration that a part spends at this station on average
          • Operation Cost
            • The cost incurred by running this station
          • Total Cost
          • Percentage
            • Percentage of the Total Cost taken up by the station in question
          Rate Calculation:
          • Your Labor Cost is calculated by how much you are paying your employee to do this work multiplied by the Part Labor (the employee timer on the station)
            • You can edit labor rates if you go into each user individually. This rate will be used over a labor rate set at a station if that is set.
          • Your Part Labor is how long your employee had a timer going on the station
          • The Part Labor Cost is calculated by the Labor Rate x Part Labor
            • To have part labor cost you need to have a labor cost on your employee or else set on the station and time going on a timer for the employee
          • The Station Labor Cost equals the Station Dwell Time (total time of parts in station) x Labor Rate
          • The Operation Rate calculates how much it costs for your station to be running
          • The Station Dwell Time is the total time of your parts in the station
          • Your Operation Cost equals the Operation Rate (how much the station costs to run) x Station Dwell Time
          • Your Margin is how much you profit on this order, which is calculated by 1 - (the total cost/the price)
          Was this article helpful?
          What's Next