Work orders are executed, and the customer is billed at cost plus a markup of 10% for all costs except for materials, which is at 5% with a minimum of $2.50 per transaction. Tool usage is not invoiced. An invoice is created once a month and the first $250 dollars in that period are free. In the invoice period work may not be required, but since you must be prepared to react quickly when needed, the customer has agreed to pay a fixed monthly contribution of $250 regardless of the fact any work is done. Finally, there is a fixed $50 admin fee if parts are used on work orders to cover overhead in the warehouse. This Charge is conditional, meaning no charge is invoiced if no parts were issued.
Define this contract as follows but take into consideration that other ways may lead to the same result.
Charge Category |
Subcategory |
Charge Level |
Invoice |
Rate |
Adjustments |
|||
---|---|---|---|---|---|---|---|---|
% Before |
Min. |
Trans Adj. |
Free Up To |
|||||
WO Charges |
All Costs |
Transaction |
Yes |
10 |
||||
WO Charges |
Stock Items |
Transaction |
Yes |
5 |
$2.50 |
|||
WO Charges |
Direct Purchases |
Transaction |
Yes |
5 |
$2.50 |
|||
WO Charges |
Tool Costs |
Transaction |
No |
|||||
WO Charges |
Stock Items |
Subcategory |
Conditional |
$50 |
||||
WO Charges |
All Costs |
Charge Cat. |
Yes |
$250 |
||||
Usage Charges |
Monthly Costs |
Transaction |
Yes |
$250 |
The following work is executed over the last month:
WO |
Type |
Act. |
Task |
Cost Type |
Trans. Qty. |
Trans. Price |
Invoice |
---|---|---|---|---|---|---|---|
10000 |
None |
01 |
None |
Part 1 |
10 |
$0.20 |
$2.50 |
Part 2 |
2 |
$90 |
$189 |
||||
Labor |
4 |
$100 |
$440 |
||||
Tool Costs |
8 |
$25 |
$0 |
||||
Total |
$631.50 |
The Invoice this month will be $681.50:
Charge Category |
Subcategory |
Charge Level |
Amount |
---|---|---|---|
WO Charges |
All |
Charge Category |
$681.50 - $250 = $431.50 |
Usage Charges |
All |
Charge Category |
$250 |
WO Charges |
Parts |
Charge Subcategory |
$189 + $2.50 +$50 (admin fee) = $241.50 |
WO Charges |
Labor |
Charge Subcategory |
$440 |
Usage Charges |
Monthly |
Charge Subcategory |
$250 |