Quote Amount Calculation Methods

A customer who is seeking service/repair for an item requests for a quotation or a proposal from the service provider for the estimated cost of the service/repair that needs to be performed as part of preventive maintenance or breakdown repair.

To calculate the price proposal amount, LN considers the following factors:

  • Discounts
  • Warranty
  • Contract
  • Repair Warranty

To calculate the price proposal amount, LN retrieves the sales price for all cost lines (a cost line is any type of cost that is incurred in maintenance/repair execution) in case the default values are present.

Proposal Methods

You can create a proposal based on the following methods:

  • Fixed

    In the Fixed proposal method, the quotation sales amount remains fixed even after you specify additional cost lines in maintenance sales order (MSO)/work order.

    Additional cost lines can be added to account for additional resource requirements when a work order is executed. The new cost lines are not invoiced to the customer.

    LN creates a maintenance sales order (MSO) for the quotation after you process the quotation. LN creates a Coverage Line of type Quotation Invoice with the same amount as the quotation sales amount when a work order that is linked to the created MSO is closed. You can invoice only this Quotation Invoice line in the maintenance sales order to the customer.

    After LN creates the maintenance sales order for the quotation, if you add a new cost/coverage line to the work order/maintenance sales order, LN informs you that the quotation from which the MSO originated is a fixed price proposal quotation. The cost line amount, which is not covered by discount, warranty, or contract is added to the quotation. The net invoice amount for the cost line is zero.

    Note

    If required, you can change a quotation with the Fixed price proposal method to a quotation with the Fixed Plus price proposal method. To do this, complete the following steps:

  • Fixed Plus

    The Fixed Plus price proposal method is similar to the Fixed price proposal method, with the only difference being that the additional cost lines are invoiced separately.

    When you cost the maintenance sales order, you can invoice the new cost/coverage line and the quotation invoice line.

  • Budget Indicator

    You can invoice all the coverage lines to the customer. LN updates the quotation sales amount whenever a quotation cost line is added, modified, or deleted. The quotation sales amount in the price proposal is an approximate amount. The actual amount can vary.

    LN does not create a Quotation Invoice line in the MSO in the Budget Indicator method of the price proposal. All the coverage lines are independently invoiced to the customer.

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