The "Unit Cost Factor" within Microsoft Dynamics 365 Business Central's Jobs module

 

The "Unit Cost Factor" within Microsoft Dynamics 365 Business Central's Jobs module is a field that is used to adjust the cost of a resource, an item, or a G/L account associated with a job. It acts as a multiplier that can either increase or decrease the base cost of a job-related resource or item when calculating the expected or actual cost.

 

Here's an example of how the "Unit Cost Factor" could be used in a job:

 

 Example: Web Design Project

 

Let's say you're running a web design agency, and you have a job to create a website for a client. The job involves different resources such as designers, developers, and project managers. Each resource has an associated cost per hour, which is their hourly rate.

 

For this example, imagine the following:

 

- The base hourly rate for a developer is $100.

- However, due to the complexity of the job, you estimate that the developers' work will be more intense and require a higher level of expertise.

 

In Business Central, you decide to set up a "Unit Cost Factor" for developers on this job to reflect the increased intensity and expertise needed.

 

1. Setting Up the Job:

   - Within the job card, you go to the Job Resource Prices page to set the price for the developer resource.

   - You enter the standard rate of $100 in the "Unit Price" field.

 

2. Adjusting for Complexity:

   - You then enter "1.25" in the "Unit Cost Factor" field for the developer resource. This factor will be used to adjust the base unit price.

 

3. Cost Calculation with Factor:

   - When calculating the cost for developers on this job, Business Central will multiply the base unit price by the "Unit Cost Factor".

   - So, the adjusted cost per hour for developers would be: $100 (base hourly rate)  1.25 (unit cost factor) = $125.

 

4. Planning and Posting:

   - When job planning lines or job journal lines for developers are entered, the system automatically uses this adjusted rate to estimate or record the cost for the work performed.

   - If a developer logs 10 hours, the cost recorded would be 10 hours  $125/hour = $1,250.

 

5. Result:

   - The "Unit Cost Factor" has effectively allowed you to account for the increased costs associated with the job's requirements without altering the base rates for the developer resource.

   - The job's financial reports will reflect this accurately, providing a true picture of the job costs.

 

In summary, the "Unit Cost Factor" is a flexible tool in Business Central that helps accurately reflect the costs of a job by taking into account variables such as complexity, resource expertise, or any other factors that might affect the base cost of resources or items. It ensures that the pricing on jobs is both competitive and profitable, accommodating for specific job nuances without the need for complex price restructuring.

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