It is possible that costs estimated for a contract or commitment might decrease or increase during the contract operations. This kind of increase or decrease in estimated costs might occur at any stage of the commitment process. In order to track such changes historically, Estimated Costs option is used.
Estimated Costs option is located under the Attached Records menu of Transactions > Sales Contracts.
Any increase or decrease in estimated costs will inevitably affect the total contract amount. Accordingly, advance and progress payment calculations are performed over the contract amount after the estimation.
The following information is entered in Control Estimated Costs window.
Contract No | This is the contract number of the estimated cost. It is assigned automatically and cannot be changed. |
Description | The description of the relevant contract is assigned automatically in this field and cannot be changed. |
Estimated Costs | Estimated Costs section is available for data entry only for the approved contracts. Estimated costs can be deleted, modified or a new entry can be made for the approved contracts. |
Work End Date | Work end date which is determined after the estimation is entered in this field. |
Estimated Cost | The amount which is determined after the estimation and should affect the contract is entered in this field. |
VAT Total | VAT of the estimated cost in entered. |
Total | Estimated Cost + VAT Total is calculated and is shown in this field. It cannot be changed. |
Increase / Decrease | This field is used to determine whether the amount which is determined after the estimation will affect the contract amount negatively or positively. The options are Increase and Decrease. Increase is the default option. |
First Contract Amount | Net total of the contract. It cannot be changed. |
Total of Estimated Costs | The total of the increase and decrease amounts which are entered in Estimated Costs section Increase/Decrease field. |
Total Contract Amount | This amount is calculated by adding The First Contract Amount and The Total of Estimated Costs. It cannot be changed. |