The Price Agreements option allows representing different agreements regarding fixed prices inside the Budget on a 'per line item' basis. Price Agreements work by affecting the rates and discount of the lines they contain.
To add a new one, click on the green plus icon next to "(No Price Agreements)" in the Budget header. Enter the Name, amount of the Fixed Price, a Note and a Colour.
By flagging a Price Agreement as Default, any Budget Detail added after that will automatically be made part of this Price Agreement.
Once done, you can start selecting which Budget Details will be affected by this Price Agreement. You can do it line by line by clicking on the arrow on the corresponding cells under the Price Agreement column, or by selecting multiple lines (Cmd + click on Mac or Ctrl + click on PC), right-clicking and choosing Budget Details > Part Of "Price Agreement Name" from the drop-down selector.
In the Budget header, the Price Agreement will display the amount connected to initial rates of each line that is part of the agreement vs the fixed price of this Price Agreement. The Price Agreement column will now display the name of the Price Agreement affecting that line and also an arrow with some options. See the View Options further down for details on how to hide and show columns.
These are the options when clicking on the arrow:
- No Price Agreement: Select this option to remove that line from this Price Agreement.
- Part of "Price Agreement Name": All Price Agreements created for this Budget will be listed
below "No Price Agreement", allowing you to select a different one if necessary.
- Discountable: By default, a line added to a Price Agreement is discountable meaning that it is affected by the agreed fixed price.
- Non-Discountable: If you do not want to discount any of your personnel involved in the work, but you still show that they are part of this work here and when you print out.
Options in arrow next to Price Agreement in Budget header:
- Copy / Paste: Price Agreements can be copied to be used on the current Budget, or on other Budgets even in other Projects.
- Forward to "To Invoice / Invoiced" View: Using this option will cause the Price Agreements to be copied to your invoice view (typically called "To Invoice/Invoiced" in the original database, or whatever name you gave it in your own) in the Project window - only if this view is pointing to Actuals (e.g. Bookings), instead of Active Budget. When later Actuals are attached to a Budget Detail, they also get added to the corresponding Price Agreement (a message pops up notifying about this). The Forecast and To Date Sell columns will not reflect the change. You would want to use this option so the same prices are applied when generating invoices for this Project.
- Forward to "Actuals" View: This option will copy the Price Agreements to the 'Actuals' view (typical name on the original database, or whatever name you gave it in your own). Use this option if you want to apply the Price Agreements not only to the final invoice view but also to the actuals view, so you get the good reporting across all states.
If you've already attached Actuals and later use the options to forward the Price Agreements, you can multi-select the attached actuals and drag&drop onto the Budget Detail again to apply the Price Agreement to the Actuals.
There's also an option to control this in the Budget window. The "Tools" menu contains a setting: "Forward Price Agreements To Project Views > No/Ask". Defaults to "No".
If changed to "Ask", whenever you create or update a Price Agreement on an Active Budget, you will be asked if it should get forwarded to the "To Invoice / Invoiced" and "Actuals" views.
The same will happen when you toggle the "Active" flag on a Budget.
For more details on how the algorithm behind a Price Agreement works and how Price Agreements are applied in the Edit Project window, please take a look at the Price Agreements manual.