Set up cost and sales rates for expenses
You can set up cost and sales prices for transaction categories in Dynamics 365 Project Operations. These prices are only applicable to expenses, so you need to set up each transaction category as an expense category to ensure accurate downstream functionality. Cost and sales prices for transaction categories must be listed in the same currency as the currency on the price list header.
To set up cost and sales rates for transaction categories, follow these steps:
Go to Sales > Customers > Price Lists.
Select New to create a new price list.
On the Category Prices, on the subgrid menu, select New Category Price.
On the Quick Create page, enter the transaction category and unit that you're creating the new price for.
The following fields are on the General tab and Quick Create page of a category price line. Keep these fields in mind as you create category prices on a sales or cost price list.
Transaction Category - The field that shows the transaction category that you're creating a sales or cost price for. The cost or sales rate of the transaction category on the incoming estimate or actual for expense will be determined by matching it against this line.
Unit Schedule - The unit schedule defaults from the unit schedule on the transaction category.
Pricing Method - The values for this field are: Price Per Unit, At Cost, and Markup Over Cost. When you're setting prices, if you select Price Per Unit, the Percent field on the category price line will be unchangeable. If you select At cost, then the Price and Percent fields are unmodifiable on the sales price list. Selecting Markup Over Cost fixes the Price field on the sales price list. Whenever an actual line for expenses is received, the pricing methods of At cost or Markup Over Cost will result in the uncharged sales line being given a price that equals the price on the cost actual or it will be calculated as a markup based on the price.
For more information, see Set up cost and sales rates for expenses.
Pricing methods for expenses
When you set up category prices that are only relevant in the context of expense pricing, you can use one of the following three pricing methods:
Price per unit - If this pricing method is chosen for a category price line that's linked to a sales price list, the system uses the default price for the category and unit combination for the estimate and actual in the project estimate lines for expenses, the quote line detail, and the contract line detail for expenses. The term actuals refer to the project actuals, the invoice line detail, and the cost line detail for expenses.
At cost - If this pricing method is chosen on the category price line that's associated with a sales price list, the price will be set to the category and unit combination, but only for the expense actual. For example, the unit price of an unbilled sales actual will be set to the unit price of the cost actual for that expense. However, this price defaulting that's based on cost won't be done on project estimates for expenses or on the quote line and contract line details for expenses.
Markup over cost - If the category price line is linked to a sales price list, then the price for the category and unit combination will default to an expense actual when this pricing method is selected. For instance, the unit price for the unbilled sales actual is set to a value that's calculated from the unit price on the cost actual for that expense, with a defined markup percentage applied. Price defaulting based on cost isn't done on project estimates for expenses or on quote line and contract line details for expenses.