Substrate Cost

iQuote requires you to configure the Substrate Cost for it to be able to calculate the engineering in Estimates and Jobs, and there are a few ways to do that. The automatic Estimate calculation, for example, is based on several specifications that you configure as defaults in the system, such as the Substrate Cost, Transformation Cost, and the Cost Account.

 

Minimum Cost

You can define a minimum cost for a Substrate that iQuote must apply whenever you use that Substrate in an Estimate. With this definition, you can be sure that a minimum value will always be charged for the Substrate even if the quantity used is low.

To define a minimum cost, you will go to the Substrate Cost screen. From there, you can:

Define a minimum cost

The system will apply the minimum cost to an Estimate when it uses the Substrate and the cost unity x the quantity calculation is less than the minimum defined.

For example, imagine that you are estimating a product that uses 2 Substrates and this Substrate's default cost unity is $10. In this case, the system would calculate that it should charge $20 (i.e., $10 x 2). However, you previously defined that this Substrate has a minimum cost of $30. Then, the system will charge $30.

Define a minimum cost per range

This option allows you to apply a minimum cost for quantity ranges so that, when you create an Estimate and its cost unity x the quantity calculation is less than the range’s minimum, the system will charge the minimum value.

For example, you can define that the system should charge at least $20 if the Estimate uses up to 100 "Papers" (i.e., the Substrate), charge at least $30 if it uses from 101 to 200 "Papers", and charge at least $40 if it uses 201 "Papers" or more.

Define a minimum cost per component

Other than being able to define a minimum cost per Estimate for the Cost Accounts, which allows you to charge a minimum amount if an Estimate or Job uses that Cost Account at least once, it is also possible to define a minimum cost per component. This allows you to estimate products taking into consideration the quantity of times that the cost was used in the Estimate; that is, how many components used the same Cost Account.

 

Defining a minimum cost

Follow the steps below to define a minimum cost for the Substrate:

From the iQuote Desktop, go to Sales > Records > iQuote > Costing > Costs > Substrate Cost.

Select the Cost Table that you want to configure and, optionally, the Plant.

Click on Change. The Costs table will open.

For each of the Substrates listed on the Substrates column, enter a value in the Minimum Cost column, in the corresponding row.

Click on Save.

The next time that you use this Substrate in an Estimate, the system will apply the minimum cost if the cost unity x the quantity calculation is less than the minimum defined.

 

Defining minimum cost per ranges

Follow the steps below to define a minimum cost range for the Substrate:

From the iQuote Desktop, go to Sales > Records > iQuote > Costing > Costs > Substrate Cost.

Select the Cost Table that you want to configure and, optionally, the Plant.

Click on Change. The Costs table will open.

Click on the Range Detail button on the top bar of the table. The Range Detail screen will open.

Click on the New button. A new line will open in the table.

Enter the Starting quantity for the first range. Then, enter the Cost and Minimum Cost for the range.

Check the Unit used and mark the Needs reviewing column for the line that you are creating, if necessary.

Add as many lines as you need to, each one with the starting quantity of the new range.

Click on Confirm.

The next time that you use this Substrate in an Estimate, the system will apply the minimum cost following the definition in the ranges that you created and if the cost unity x the quantity calculation is less than the minimum defined.

 

Defining minimum cost per component

To define a minimum cost per component, follow the steps below:

Go to Sales > Records > iQuote > Costing > Cost > Transformation Cost.

Select the Cost Table that you want to configure and, optionally, the Plant.

Click on Change. The Costs table will open.

In the Minimum Cost per Component column, enter the minimum amount that you want to charge every time that a material related to the same a Cost Account is used.

Click on Save.

The next time that you create an Estimate that uses the Cost Account for which you defined a minimum cost per component, the system will apply the cost according to how many times it was used.

 

Change The Estimate's Substrate Costs

Other than the default costs, it is also possible to manually change some of the costs directly in the Estimate by using the Cost Items table from the Edit Multiple Cost window.

The Cost Items table displays all the substrates used in the Estimate on the first column, with the name in bold. Following the name, you can find the Process, Unit of Measure, Quantity (i.e., the amount of kilograms, in the case above), Unit Cost, Minimum Cost, and Total Cost related to each of the Options' quantities split into different rows.

Note: When you edit the costs through the Edit Multiple Cost window, the system will apply the changes in the specific Estimate that you are editing. The Costing setups in your environment will remain unchanged and the system will use them in other Estimates as required.

 

Editing the unit and total costs

To edit the Unit Cost and Total Cost manually from within the Estimate, follow the steps below:

  1. Navigate to Sales > iQuote > Estimate and access an existing Estimate record or create a new one.
  2. Click on More Actions and then on Edit Multiple Cost. The Edit Multiple Cost window will open.
  3. In the Cost Type field, select the "Substrate" option.
  4. In the table, you can change the Unit Cost and Total Cost for each of the Options' quantities by entering a new value in that Option's quantity row. The system will change the font and color of the value that you edited to highlight it.

Note: Whenever you change either Unit Cost or the Total Cost manually, the system will recalculate and modify the other one automatically. 

Alternatively, you can change the value for all the Options at once by entering the value in the first row related to the Substrate (i.e., the parent line). The system will automatically replicate the same value for all of the Options.

Once you are done with the changes, click on Confirm so that the system applied them to the Estimate. You can check the difference in the Negotiation tab after recalculating the engineering.

 

Copying costs

In a scenario where you need to use the same Unit Cost to more than one Option quantity, you can easily replicate the values by using the Copy Cost functionality. For that, follow these steps:

  1. Navigate to Sales > iQuote > Estimate and access an existing Estimate record or create a new one.
  2. Click on More Actions and then on Edit Multiple Cost. The Edit Multiple Cost window will open.

In the Cost Type field of the Edit Multiple Cost window, select the "Substrate" option.

Click on the Copy Cost button. The Copy Cost window will open.

Select the Quantity Option and Cost Type that you want to copy the data from.

Note: If any of the Options was select on the previous page, its data will automatically load in the Quantity Option and Cost Type fields. 

Select a Cost Account between the available options.

On the grid to the right, select the Options' quantity(ies) you want to apply the copied cost on.

Once you are ready, click on Confirm.

 

Minimum cost in the estimate

If you have already defined ranges in the Substrate Cost table, it is possible for you to define in a specific Estimate a minimum cost for the Substrates used. This will override the default configuration that you saved on the Substrate Cost screen. 

To define Minimum Cost in the Estimate, follow the steps below.

  1. Navigate to Sales > iQuote > Estimate and access an existing Estimate record or create a new one.
  2. Click on More Actions and then on Edit Multiple Cost. The Edit Multiple Cost window will open.
  3. In the Cost Type field of the Edit Multiple Cost window, select the "Substrate" option.
  4. In the table, you can change the Minimum Cost of the Substrate for all the Estimate Options at once by entering the value in the first row related to the Substrate (i.e., the parent line). The system will change the font and color of the value that you edited to highlight it.

Note: You cannot apply a different minimum cost to each of the Options' quantities. If you enter a value in the parent line, the system will use that value in the whole Substrate.

 

Defining cost ranges in the estimate

As it is possible to configure default ranges through the Substrate Cost screen, you can also do that manually for a specific Estimate. For that, follow the steps below:

  1. Navigate to Sales > iQuote > Estimate and access an existing Estimate record or create a new one.
  2. Click on More Actions and then on Edit Multiple Cost. The Edit Multiple Cost window will open.
  3. In the Edit Multiple Cost window, click on the Substrate Cost Range tab.

In the Substrate Cost Range tab, click on the New button. A new line will open in the table.

Enter the Starting quantity for the first range. Then, enter the Cost for the range.

Add as many lines as you need to, each one with the starting quantity of the new range.

Click on Confirm. The system will apply the cost according to the quantity of the Substrate being used, following the definition in the ranges that you created. You can see the new Substrate cost values in the Negotiation tab of the Estimate.

 

Note: After you create the new Substrate Cost Range(s), if the new values are more expensive than another Substrate option, the engineering will choose the other one. If that is the case, and the new Cost Item is not used in any of the Estimate Options, then that Cost Item will not have the Used checkbox checked.