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Rate Adjustments during a Fiscal Year Transition

A rate adjustment is often implemented simultaneously with a fiscal year transition, if desirable and necessary of course. Different rates are available within MKG. For two types of rates of operations, net and billable rate, you can specify a price per hour, with which MKG calculates different prices.

 

During the execution of a fiscal year transition, in today's administrative systems, actions that only occur once a year still have to be performed. These actions cause questions, or worse, are not performed at the most appropriate time. To avoid these questions and to make the transition to the fiscal year run as smoothly as possible, you will therefore have to perform one or more actions every year.

 

Rates and Surcharge Percentages

Rates and surcharge percentages are not fiscal year-dependent. As soon as you change a rate, it will be applied immediately to all amounts charged for this rate. An adjustment in the mark-up and coverage percentages in the administration settings or sales groups is comparable. This adjustment will also be applied immediately for new calculations.

For estimates (quotation calculations and production order calculations), the mark-up percentages for coverage and cost price are recorded in the header of the estimate. The percentage that is used depends on when you create the new header. The moment you click the New

button, the settings that are currently known in the administration settings or sales groups are copied for that calculation. At first glance, this does not appear to be that complex, until the coherence and functionality of the rates is explained in more detail.

 

Link between Net Price, Cost Price and Calculation Price

The net price, cost price and calculation price can (when set so) be linked. You would want to 'finish' current production orders for the old fiscal year with the net price and cost rates of the old year, while new calculations for quotations yet to be issued should be calculated with the calculation price according to the new rate. This differentiated approach is not possible with MKG.

As soon as you adjust the rate, it will be used in all processing for hours. The subsequent calculations are therefore always filled with the rates for operations filled at the time of processing. In practice, this means for production orders that cross the fiscal year transition that they receive their cost price and net price at a mix of the old and the new rate.

 

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