Billable Line Price Formulas
The Billable Line Price is calculated in two steps: first, determining the price after coverage, and second, applying any applicable discount.
The following variables are used in the calculation:
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Variable
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Definition
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Line Qty
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The quantity of the line item (e.g., hours of labor, number of parts).
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Unit Price
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Unit price as defined in the pricebook, before coverage or discount is applied.
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Covered %
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The percentage of the Unit Price covered by an entitlement (e.g., warranty, contract).
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Discount %
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The percentage discount applied to the billable portion of the price.
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Formula A: Billable Price Without Discount (Price After Coverage)
Billable Line Price = (Line Qty × Unit Price) × (1 - Covered %)
Formula B: Billable Price with Discount
Billable Line Price = [(Line Qty × Unit Price) × (1 - Covered %)] - Discounted Price
Where Discount Price = [(Line Qty × Unit Price) × (1- Covered %)] × Discount %
Example Calculation: Billable Line Price
For example, using a line quantity of 2, a unit price of $250, a coverage of 50%, and a discount of 10%, the Billable Line Price is calculated by applying coverage first and then the discount.
• Step 1: Calculate Price After Coverage: This is the price the customer is responsible for before any additional discount is applied.
◦ Formula Used: (Line Qty × Unit Price) × (1 - Covered %)
◦ Substitution: (2 × $250) × (1 - 0.50)
◦ Calculation: $ 500 × 0.5 = $250.00
◦ Billable Line Price (No Discount): $250.00
• Step 2: Calculate Final Billable Price (With Discount): The discount is applied to the Price After Coverage ($250.00) calculated in Step 1.
◦ Formula Used: Price After Coverage × (1 - Discount %)
◦ Substitution: ($250) × (1 - 0.10)
◦ Calculation: $250 × 0.90 = $225.00
◦ Billable Line Price (No Discount): $225.00
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