Set up cost and sales rates for expenses

Applies To: Project Operations Integrated with ERP, Project Operations Core

You can set up cost and sales prices for transaction categories in Dynamics 365 Project Operations. Because the cost and sales prices are designed for Expenses, each transaction category that includes these, must also be set up as an expense category. This set up ensures accuracy in downstream functionality. Cost and sales prices for transaction categories can only be listed in one currency, which must be the currency on the price list header.

To set up cost and sales rates for transaction categories, complete the following steps.

1. Go to Sales > Customers > Price Lists.
2. Select New to create a new price list.
3. On the Category Prices, on the subgrid menu, select New Category Price.
4. On the Quick Create page, enter the transaction category and unit that you're creating the new price for.

The following table lists the fields on the General tab and Quick Create page of a category price line that you should keep in mind as you create category prices on a sales or cost price list.

Field	Location	Description	Downstream impact
Transaction Category	General tab and Quick Create pages	Select the transaction category you're creating a sales or cost price for.	The transaction category on the incoming estimate or actual for Expense are matched against this line to default the cost or sales rate of the transaction category.
Unit Schedule	General tab and Quick Create pages	The unit schedule defaults from the unit schedule of the transaction category.	There isn't any downstream impact from this field.
Unit	General tab and Quick Create pages	Select the unit for which the rates are being set up.	The unit on the incoming estimate or actual is matched against the unit on this line to default the rate on the expense estimate or actual.
Pricing Method	General tab and Quick Create pages	Possible values of the Pricing Method field are, Price Per Unit, At Cost, and Markup Over Cost.	During price setup, selecting Price Per Unit locks the Percent field on the category price line. If At cost is selected, the Price and Percent fields are locked on the sales price list. Selecting Markup Over Cost locks the Price field on the sales price list. On an incoming actual line for expense, the At cost or Markup Over Cost pricing method results in the corresponding unbilled sales line being assigned a price that is equal to the price on the cost actual or calculated as a markup over the price.
Price	General tab and Quick Create pages	Set up a per unit rate for the transaction category and unit combination. For example, the rate for mileage is 10 USD per mile and 8 USD per Kilometer.	The mileage rate is the rate that defaults on the per unit price or cost of the incoming estimate or actual line for an expense transaction class.
Percent	General tab and Quick Create pages	Set up percent over cost for the transaction category and unit combination. For example, the airfare sales rate should be marked up 10 percent over the cost of the incurred airfare expense.	This percent over cost is only applicable on a sales price list when the pricing method selected is Markup Over Cost.
Currency	General tab and Quick Create pages	By default, this value comes from the currency on the header of the price list. For transaction category pricing, the currency can't be overridden.	This currency defaults on the per unit price of the incoming actual line for the expense transaction class for cost and sales.

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
• At cost
• Markup over cost

Price per unit

When this pricing method is selected on a category price line that is linked to a sales price list, the price defaults for the category and unit combination in both the estimate and the actual. Estimate refers to the project estimate lines for expenses, the quote line detail, and the contract line detail for expenses.

Note

For expense transactions, unit conversions aren't supported. For example, if a price list has a travel price with a unit of miles, then expenses must be expressed in miles and not kilometers even if the unit group has a conversion between them. Alternatively, a second travel price with a unit of kilometers could be added to the price list.

At cost

When this pricing method is selected on the category price line that is linked to a sales price list, the price defaults for the category and unit combination only for the expense actual. For example, unbilled sales actuals for the expense transaction class. The unit price is set on the unbilled sales actual from the unit price on the cost actual for that expense. Price defaulting based on cost isn't done on project estimates for expenses or the quote line and contract line details for expenses.

Markup over cost

When this pricing method is selected on a category price line that’s linked to a sales price list, the price defaults for the category and unit combination only for an expense actual. For example, unbilled sales actuals for the expense transaction class. This unit price is set on the unbilled sales actual to a calculated value from the unit price on the cost actual for that expense after the defined markup percent is applied.

Note

Price defaulting for expenses, based on cost [Markup over cost] is valid on project estimates, actuals, quote lines, contract line details, budget lines and budget line details.