What it is
How material and labour consumption is worked out on quotes: which document triggers the deduction of consumption, and how much an hour of work is worth.
What it is for
- Choosing which document triggers the deduction of consumption (invoice, delivery note, work order or quote).
- Setting the cost per hour of labour used by operations with an hours multiplier.
- Keeping these two parameters in one place so that the quoting engine works out costs and deducts consumption automatically.
How it is used
It is a window (dialogue) opened from the Automations section. It has no actions menu of its own: you set the two values, click Save and the window closes. If you do not want to save, click Close.
Options
| Field (wording on screen) | Type | What it is for | Default |
|---|---|---|---|
| Consumption module is calculated from: | Invoice / Delivery note / Work order / Quote | Which document triggers the deduction of material consumption and staff hours. The usual choice is Invoice (only what has been invoiced is deducted). | Invoice |
| Cost per hour: | Number (currency/hour) | Labour cost per hour. It is used to work out automatically the cost of operations that carry an hours multiplier. The suffix (e.g. €/h) is shown in your currency. | 0 |
How "Cost per hour:" works
If an operation option has a cost with an "hours" multiplier, the system works out:
Cost of the operation = hours × cost per hour
Example: laminating takes 3 hours and Cost per hour: = €25.00. Staff cost of the laminating = €75.00.
If you leave the cost per hour at 0, operations with an "hours" multiplier do not contribute any staff cost automatically (you would have to enter the fixed cost by hand).
How "Consumption module is calculated from:" works
The system keeps implicit stock control: when a document of the chosen type is closed, it deducts the consumables that job used.
| Choose | When consumption is deducted |
|---|---|
| Invoice | When you issue an invoice. The most cautious option. |
| Delivery note | When you issue a delivery note (on delivery). |
| Work order | When you accept the order. Useful if you control stock by work order. |
| Quote | When you accept the quote. Only if you want the deduction to happen on confirmation. |
Buttons and actions — what each one does
The exact wording you see on screen.
| Button / Control (wording on screen) | What it does |
|---|---|
| Consumption module is calculated from: | Selector that sets the base document used to work out the consumption module. Options: Invoice, Delivery note, Work order, Quote. |
| Invoice (selector option) | Works out consumption from invoices. It is the default option and the most cautious. |
| Delivery note (selector option) | Works out consumption from delivery notes (on delivery). |
| Work order (selector option) | Works out consumption from work orders. |
| Quote (selector option) | Works out consumption from quotes (on acceptance). |
| Cost per hour: | Numeric field that sets the operation cost per hour (in currency/hour format, e.g. €/h). It is used by operations with an hours multiplier. |
| Save | Saves the two values (base document for consumption and cost per hour) and closes the window. |
| Close | Closes the window without saving the changes. |
Key concepts
Terms that appear on screen. The user asks "what is X / what is X for?" using these words.
- Consumption module: the measure that works out how many resources a purchasing operation has consumed, according to the reference document you choose in "Consumption module is calculated from:". It is what decides when material consumption is deducted.
- Cost per hour: the monetary value representing the operation cost for each hour of work. It is entered in the "Cost per hour:" field and feeds the calculation of operations charged by the hour.
- Purchasing Settings: the set of operating parameters of the purchasing module. It groups the base document for consumption and the cost per hour together. It is what you save with Save.
Permissions
- Requires
auto_edit.
Frequently asked questions
Q: What is the "Consumption module is calculated from:" field for?
A: It sets which document triggers the deduction of consumption. You choose between Invoice, Delivery note, Work order and Quote. When a document of that type is closed, the system deducts the consumables that job used.
Q: When is it better to deduct consumption from the quote rather than the invoice?
A: If you are confident that everything accepted gets invoiced, choosing Quote gives you earlier stock control. If jobs are cancelled often, Invoice is better so you do not deduct work that was never done.
Q: My hourly cost is €18.00. Where do I enter it?
A: In the "Cost per hour:" field. From then on, operations charged "by the hour" will use €18.00/h automatically. Click Save to apply it.
Q: Which operations count as "by the hour"?
A: The ones that have a cost with Multiplier: hours in their setup (see Operations). The quoting engine multiplies the estimated hours of the job by the value of "Cost per hour:".
Q: What does the "Save" button do?
A: It saves the two values (the base document of the consumption module and the cost per hour) and closes the window. Until you click Save, the changes are not applied.
Q: What does the "Close" button do?
A: It closes the window without saving the changes. Use it if you opened the settings by mistake or do not want to apply what you changed.
Q: I changed the base document to "Delivery note" but consumption is not being deducted. Why?
A: Check that you clicked Save and not Close. The deduction is triggered when a document of the chosen type is closed; with Delivery note it happens when the delivery note is issued, not before.
Q: If I raise the cost per hour, do the prices on old quotes change?
A: No. Saved quotes keep the price they had. Only new ones use the updated cost.