Line type

For a scope document, you can define the scope of work in the Scope Document Lines (tpctm6101m000) session.

The Line Type field in this session is used to determine how the scope of work is maintained. These are the available Line Types:

Amount Only

The application calculates the Sales Amount by adding the Cost Amount to either the Markup Percentage or the Markup Amount. formula: Sales Amount = Cost Amount + Mark percentage or Markup Amount.

Rate Only

The application calculates the Sales Price by adding the Unit Cost to either the Markup Percentage or the Markup Amount. The Cost Amount and Sales Amount are calculated as:
  • When the Pricing Method is set to Target Pricing you can define the Sales Price for each Unit of the Cost Object based on the requirement keeping specific profit amount in mind.
  • When the Pricing Method is set to Markup the application calculates the Sales Price and Sales Amount.

    formula: Sales Price = Unit cost + Markup Amount

    formula: Sales amount = Quantity * Sales Price.

Quantity and Rate

You can specify the Quantity and the Unit Cost. The application calculates the Cost Amount based on this formula: Cost Amount = Quantity x Unit Cost. The Cost Amount and Sales Amount are calculated as:
  • When the Pricing Method is set to Target Pricing you can define the Sales Price for each Unit of the Cost Object based on the requirement keeping specific profit amount in mind.
  • When the Pricing Method is set to Markup the application calculates the Sales Price and Sales Amount.

    formula: Sales Price = Unit cost + Markup Amount

    formula: Sales amount = Quantity * Sales Price.

Note: The specified amount is expressed in the currency defined for the related contract line.