In ProdSys, article calculation is essential for determining the cost and price of various products or services offered by a company. These calculations ensure that the right pricing strategy is applied based on material usage, labor, dimensions, weight, and other relevant factors. Below is an explanation of how the formulas are used in article calculation, and how they contribute to accurate pricing in the system.
Access the Article formulas
Here’s a short step-by-step guide on how to access the calculation for an article in ProdSys:
Navigate to the Articles Module:
From the main dashboard or the left-hand side menu, click on Articles.
Select the Desired Article:
Search for the article you want to view by using the search field or scrolling through the article list.
Click on the article to open its details.
Access the Calculation Tab:
In the article detail view, locate the Calculation tab on the left-hand menu.
Click on Calculation to view the cost and price-related details for the selected article.
View and Edit Calculations:
In the Calculation tab, you can view or adjust the Cost items and Material costs related to the article.
You can see purchase price, cost price, sale price, and other relevant financial details.
This allows you to review and adjust the pricing structure of the article directly.
1. Understanding Article Calculation Basics
Article calculations typically involve several key components such as:
Material costs: The raw materials required to produce an item.
Labor costs: Time and effort spent by employees or machines to complete the task.
Other costs: Packaging, overheads, and shipping.
Dimensions and weight: These are critical for products that are sold based on their size or weight (e.g., meters, kilograms, or square meters).
The formulas in ProdSys are designed to account for these factors and ensure that the calculated price reflects the actual cost of production and an appropriate profit margin.
2. How the Formulas Work
Each formula in ProdSys represents a specific calculation based on the type of product or service being handled. Below are some common categories and how they are used:
Unit price
Unit price formula is used for calculating the total price using a unit price.
Formula:
Price/piece = Quantity x Price
Usage: The Price/piece formula (Quantity x Price) is used for calculating the total cost of products or services that are sold in individual units. This formula is straightforward and is applied when a product is priced per piece, unit, or item, regardless of its dimensions or weight.
Price Based on Material Costs
Formulas like Price/m² or Price/kg calculate the price based on material dimensions or weight. For example:
Formula:
Price/m² = Quantity x m² x Material Price
Usage: This formula is used when the price is calculated based on square meters, common for flooring, fabrics, or glass. The system multiplies the area (m²) by the material price per square meter and the number of units (quantity).
Price Based on Labor Costs
Time-based formulas help calculate labor costs associated with production or service delivery.
Formula:
Hourly Price = Quantity x Hours x Rate
Usage: Used for services that involve labor, such as repair services or assembly tasks. The system multiplies the hours worked by the hourly rate and the number of units to calculate the total labor cost.
Price for Packaged Items
For items sold in packages, such as boxes or pallets, specific packaging-based formulas are used.
Formula:
Price/Package = (Quantity x Price) / Number of Packages
Usage: If a product is packaged in multiple boxes or containers, this formula calculates the price per package. This helps in determining the price for bulk orders or shipments.
Dimension-Based Calculations
Products that are sold based on their length, width, height, or thickness require dimension-based formulas.
Formula:
Price = Quantity x ((Width + Height) x 2) x Material Price
Usage: This formula is typically used for calculating the price of items like frames or panels, where the perimeter (2 x (Width + Height)) is important in determining the material usage.
Specialized Formulas
Certain products, such as custom-made or specialty items, may require more complex formulas that involve multiple variables.
Formula:
Price/m² = Quantity x (B + H) x Length x Area x RateUsage: Used when the item’s price depends on both material area and labor input, such as in construction projects or custom fabrication work. This formula factors in both the dimensions and the time required to produce the item.
3. Application in the System
The formulas in ProdSys are applied during different stages of article calculation, depending on the nature of the product and the workflow:
Sales Orders: When a customer places an order, the system uses these formulas to calculate the price of the items in the order based on the product specifications, quantity, and any customization involved.
Production Planning: In production, these formulas help estimate material usage, labor hours, and associated costs to ensure that the final product is delivered within the estimated cost.
Quotations: When creating quotations for customers, the system can quickly apply these formulas to generate accurate pricing based on the customer’s requirements.
4. Choosing the Right Formula
Selecting the appropriate formula depends on the characteristics of the product or service:
Flat-rate items: For items sold in pieces (e.g., furniture or electronics), formulas like
Price/piece: Quantity x Priceare used.Measured items: For items sold in bulk or by measurement (e.g., building materials, fabrics), formulas like
Price/m²orPrice/kgare more applicable.Custom services: For tasks that require time-based costing (e.g., installation services, repairs), labor-based formulas like
Hourly Priceare essential.
5. Automation in Pricing
ProdSys automates the use of these formulas once the product attributes (dimensions, weight, material, labor, etc.) are entered. This reduces manual calculations, minimizes errors, and speeds up the pricing process, ensuring consistency and accuracy across all orders.
6. Adjustments and Customization
If needed, users can customize the formulas to accommodate unique products or services. For example:
Changing Rates: If the labor rate changes, the hourly rate can be updated in the system, and the formula will automatically adjust the pricing for all related items.
Complex Formulas: For projects that require custom work or specific pricing strategies, more complex formulas can be implemented to capture all the necessary variables.
Conclusion
The article calculation formulas in ProdSys are designed to accurately reflect material, labor, and packaging costs for various types of products and services. By leveraging these formulas, businesses can ensure precise pricing, improve cost control, and enhance profitability. Understanding how to apply these formulas effectively helps optimize both sales and production processes within the system.
Article cost formula list
This is the cost formulas you can use to calculate and Article
Hourly price: Hours x Rate | Calculates the hourly price based on the number of hours worked and the rate. |
Hourly price: Quantity x Hours x Rate | Calculates the hourly price based on the number of hours worked for the given quantity. |
Hourly price/m: Hours x Height x Rate | Calculates the hourly price using the height, hours worked, and rate. |
Hourly price/m: Hours x Length x Rate | Calculates the hourly price using the length, hours worked, and rate. |
Hourly price/m: Hours x Width x Rate | Calculates the hourly price using the width, hours worked, and rate. |
Hourly price/m²: Quantity x Hours x (W + H) x Length x Area x Rate | Calculates the hourly rate based on area (length and width/height) and time worked for the given quantity. |
Hourly price/m²: Quantity x Hours x Area x Rate | Calculates the hourly rate based on area and time worked for the given quantity. |
Hourly price/m²: Quantity x Hours x Area x Length x Rate | Calculates the hourly rate based on the area, length, and time worked for the given quantity. |
Hourly price/m²: Quantity x Hours x Area x Width x Rate | Calculates the hourly rate based on the area, width, and time worked for the given quantity. |
Hourly price/m: Quantity x Hours x Length x Rate | Calculates the hourly rate based on the length and the number of hours worked for the given quantity. |
Hourly price/m: Quantity x Hours x Width x Rate | Calculates the hourly rate based on the width and the number of hours worked for the given quantity. |
Hourly price/m²: Quantity x Hours x Width x Height x Rate | Calculates the hourly rate based on width, height, and time worked for the given quantity. |
Hourly price/m²: Quantity x Hours x R x PI x Length x Rate | Calculates the hourly rate using a circular shape formula (R x PI) for the given quantity and time worked. |
Initial Cost: (Quantity x Price) / Number of order lines | Calculates the initial cost by dividing the quantity and price by the number of order lines. |
Initial Price/Rate: (Quantity x Rate) / Number of order lines | Calculates the initial price per rate by dividing the quantity and rate by the number of order lines. |
Initial Time: (Quantity x Rate x Hours) / Number of order lines | Calculates the initial time cost by dividing the total time and rate by the number of order lines. |
Price: Quantity x ((Width + Height) x 2) x Material price | Calculates the price based on the perimeter (2 x (Width + Height)) and the material price for the given quantity. |
Rate price: Quantity x Rate | Calculates the price based on the rate for the given quantity. |
Price/kg: Quantity x Weight x Rate | Calculates the price based on weight and a rate per kilogram for the given quantity. |
Price/kg: Quantity x Weight x Price | Calculates the price based on weight and the unit price for the given quantity. |
Price/m² Glass: Quantity x m² x Price | Calculates the price for glass per square meter for the given quantity. |
Price/m: Quantity x Height x Material price | Calculates the price per meter based on the height and material price for the given quantity. |
Price/m: Quantity x Height x Price | Calculates the price per meter based on the height and unit price for the given quantity. |
Price/m: Quantity x Length x Material price | Calculates the price per meter based on the length and material price for the given quantity. |
Price/m: Quantity x Length x Rate | Calculates the price per meter based on the length and rate for the given quantity. |
Price/m: Quantity x Length x Price | Calculates the price per meter based on the length for the given quantity. |
Price/m: Quantity x Width x Material price | Calculates the price per meter based on the width and material price for the given quantity. |
Price/m: Quantity x Width x Price | Calculates the price per meter based on the width for the given quantity. |
Price/m: (Quantity x Length x Price) / Number of packages | Calculates the price per meter divided by the number of packages for the given quantity. |
Price/m: Quantity x Width x Material price | Calculates the price per meter using the width and material price multiplied by the quantity. |
Price/m: Quantity x Width x Price | Calculates the price per meter using the width and overall price multiplied by the quantity. |
Price/piece: Quantity x Rate | Calculates the price per piece based on the quantity and rate. |
Price/piece: Quantity x Price | Calculates the price per piece based on the quantity and unit price. |
Price/piece: (Quantity x Price) / Number of packages | Calculates the price per piece by dividing the total quantity and price by the number of packages. |
Price/piece: Quantity x (Price + Material price) | Calculates the price per piece including both the price and material cost for the given quantity. |
Price/m²: Quantity x m² x Material price | Calculates the price per square meter based on the material price for the given quantity. |
Price/m²: Quantity x ((Width + Height) x 2) x Price | Calculates the price per square meter based on the perimeter for the given quantity. |
Price/m²: Quantity x Length x (Width + Height) * Price | Calculates the price per square meter using the length and perimeter for the given quantity. |
Price/m²: Quantity x Length x Height x Material price | Calculates the price per square meter using the length, height, and material price for the given quantity. |
Price/m²: Quantity x Length x Height x Price | Calculates the price per square meter using the length, height, and unit price for the given quantity. |
Price/m²: Quantity x Length x Width x Material price | Calculates the price per square meter using the length, width, and material price for the given quantity. |
Price/m²: Quantity x Length x Width x Price | Calculates the price per square meter using the length, width, and unit price for the given quantity. |
Price/m²: Quantity x m² x Material price | Calculates the price per square meter using the material price for the given quantity. |
Price/m²: Quantity x m² x Price | Calculates the price per square meter using the price for the given quantity. |
Price/m²: Quantity x Width x Height x Material price | Calculates the price per square meter using the width, height, and material price for the given quantity. |
Price/m²: Quantity x Width x Height x Price | Calculates the price per square meter using the width, height, and price for the given quantity. |
Price/m²: Quantity x Width x Thickness x Material price | Calculates the price per square meter using the width, thickness, and material price for the given quantity. |
Price/m²: Minimum goal: Quantity x m² x Price x Material price | Calculates the price per square meter with a minimum size and material price for the given quantity. |
Price/m²: Minimum goal: Quantity x m² x Price | Calculates the price per square meter with a minimum size for the given quantity. |
Price/m²: Minimum goal: Qty x m² x Price | Calculates the price per square meter, with a minimum size, multiplied by the quantity and price. |
Rate price: Quantity x Price / Rate | Calculates the rate per unit based on the quantity and total price. |
Rate price: Rate / Quantity | Calculates the rate per unit based on the total rate and quantity. |
Price: Quantity x ((Width + Height) x 2) x Material price | Calculates the total price based on the perimeter and material price for the given quantity. |
Price: Price | Directly refers to the total price. |
Note: Length, width, height, and thickness are always specified in millimeters (mm)
Dimensions
In ProdSys, dimensions such as length, width, height, and thickness are always specified in millimeters (mm) to maintain consistency and precision across various industries and manufacturing processes. Using millimeters ensures:
Standardization: Millimeters are a standard unit in most technical and engineering fields, providing a common reference point for all users, suppliers, and manufacturers.
Precision: Millimeters offer a higher degree of accuracy, which is especially important in industries where small variations in measurements can significantly affect production or product quality.
Avoiding Conversion Errors: By using one consistent unit (mm), ProdSys minimizes the risk of errors that can occur during conversions between units such as centimeters, inches, or meters.
Compatibility with Tools and Machines: Many manufacturing tools and machines are calibrated in millimeters, making it easier to input exact dimensions and ensure compatibility with equipment.
This approach helps ensure that calculations and measurements remain precise and easy to manage across various processes in the system.
Unit Quantity in Articles
Using Custom Units Defined in the Unit Table in ProdSys
In ProdSys, each article can be associated with a specific "Unit Quantity," which represents the measurement unit used to quantify that article. This feature allows users to define and use custom units that are tailored to their needs by linking them to units from the Unit table in the system.
Here are some examples of custom units in various industries:
Piece (pcs) – Commonly used for individual items.
Kilogram (kg) – A standard unit for measuring weight, especially in industries like manufacturing, agriculture, and retail.
Meter (m) – Used to measure length in industries like construction, textiles, and manufacturing.
Liter (L) – A volume measurement used in industries such as beverages, chemicals, and fuel.
Box (box) – Common in retail, packaging, and distribution for bulk quantities.
Pallet (plt) – Used in logistics and supply chains to measure large quantities of goods stored on pallets.
Roll (roll) – Used in industries like textiles, paper, and film production.
Carton (ctn) – Often used in packaging and distribution.
Dozen (doz) – Used to measure groups of 12 items, common in retail.
Gallon (gal) – A unit of volume often used in the food and beverage industry, as well as in fuel distribution.
Pack (pack) – Used for packaged goods, often in retail and wholesale industries.
Bundle (bndl) – Often used for groups of items packaged together, common in construction and textiles.
Square Meter (m²) – Used for area measurements, especially in construction, flooring, and real estate.
Hour (hr) – Common in service industries, especially for billing labor.
Gram (g) – Used for smaller weight measurements, often in food, pharmaceuticals, and chemicals.
These units can be customized and used in systems like ProdSys, depending on the specific needs of the business or industry.