To structure the estimate
To create an estimate, the structural element with a top-down leading estimate type is required. In the Structural Element session, you can define the estimate type as top down or bottom up. The leading estimate type of a structural element determines the method of calculation of the estimate and you can also modify the estimate type.
Enter your top-down estimate in the Estimate Lines (tpest2100m000) session such as the line number, activity, description, estimate type, line level type, and amount in EURO.
| Line 5 | TOP | Yacht | Top down | Total | 60 million |
| Line 10 | 01 | Redesigning | Top down | Total | 9 million |
| Line 20 | 02 | Building ship | Top down | Total | 50 million |
| Line 25 | 03 | Decorating | Top down | Total | 1 million |
Element 03, Line 25, is subcontracted to another company. A request for a quotation is sent to the subcontractor, but the estimate for the cost is EURO 1 million.
Estimate lines
You must specify detailed estimate lines and you must define the entire estimate structure. Child activities, for which more bottom-up information is available, use the Bottom-Up leading estimate type option:
| Structural Element | LET | Launch Level Type | Cost Level Type | Sales Level Type |
| TOP = The yacht | top down | detail | total | total |
| 01 = Redesigning | top down | detail | total | total |
| 02 = Building | top down | detail | total | total |
| 03 = Decorating | top down | detail | total | total |
| 011= CAD rework | top down | detail | total | total |
| 021= Steel | bottom up | detail | detail | total |
| 022= Yard work | bottom up | detail | detail | total |
| 023= Engine | bottom up | detail | detail | total |
The structural element 011 is linked to 01. The structural element 021, 022, and 023 are linked to 02. Based on the linking, the 02 Building ship parent activity remains a top-down activity because of expected overhead costs.
| Line number | Activity | Estimate Type | Line Level Type | Amount in EURO |
| 30 | 021 | top down | total | 30 million |
| 35 | 022 | top down | total | 15 million |
| 40 | 023 | top down | total | 2 million |
| 45 | 011 | top down | total | 5 million |
| 50 | 011 | top down | detail | 3 million |
| 55 | 011 | top down | detail | 2 million |
| 60 | 02 | top down | cost type (labor) | 4 million |
| 65 | 02 | top down | cost type (material) | 46 million |
Estimate details
In the example, a top-down estimate is used and amounts are allocated. However, the two internal departments involved in this project provide their own estimates for building the yacht. Based on their evaluation, they provide a more detailed calculation. Specify these lines and the related details in the estimate version.
| Line number | Activity | Estimate Type | Line Level Type | Amount in EURO |
| 70 | 011 | bottom up | total | 5 million |
| 80 | 011 | bottom up | detail | 2.7 million for engineering |
| 81 | 011 | bottom up | detail | 0.3 million for project management |
| 85 | 023 | bottom up | detail | 1 million |
| 90 | 022 | bottom up | detail | 15 million |
| 95 | 021 | bottom up | total | 40 million |
| 100 | 03 | bottom up | detail | 0.5 million |
If you view the details of the activity 011, a top-down total of EURO 5 million is expected. However, if you add the two bottom-up detail lines of 011, that part of the ship adds up to EURO 3 million or 5 million, depending on the Line Level Type. If all required estimate lines are specified, you can aggregate the totals and view the estimate amounts for the leading estimate type. For the formulas, refer to Estimate Lines (tpest2100m000) session.