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Framework has the ability to link the Variation Price Book (VPB) items to database assemblies to easily maintain cost and retail pricing of VPB items and also to create Estimates through exporting of those assemblies.

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Using the Variation Price Book (VPB) beyond a simple reference tool for displaying retail pricing with links to database assemblies can become a powerful business tool that requires less maintenance than a traditional options book.

These benefits include

• The ability to measure anticipated margins at any document stage.

• Increase profitability by using known current cost prices.

• Increase productivity by exporting the BOQ’s used within the Framework documents to create Estimates.

• Retail prices can be automatically kept up to date via the use of formula’s in the VPB items, you will always know the selling price is maintained.

• An item linked to an assembly to generate cost price is easily maintained as a consequence of normal supplier price database updates.

• Ensures that both Sales Estimators and Production Estimators are selling and ordering the same items.

What to Do

Requirements

Pre-requisites

• Assemblies

• Set up of areas in the Framework VPB (if required)

• Area pricing in WMS (if required)

• Access to the Sales Pricing module in WMS (for using Sales Worksheets)

• License for Integration Timberline Sales Pricing

• License for Integration Document/Estimate Creation

Things to Consider

• WMS worksheet set up (refer to WMS help files)

• Assembly numbering (what has been defined as base for WMS assemblies?)

• Analysis

Planning

The most important aspect of adding BOQ links to VPB items is to consider how the item is going to be used from a sales estimating and production estimating prospective. Defining the structure of the VPB and where the items are located within it is the first stage of avoiding duplicate items.

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Questions that you would need to ask may include:

• Will the item be a standard items or table item in the VPB.

• Is the item a fixed unit of measure? (i.e. cannot be varied on specific jobs)

• Is the item a fixed BOQ quantity? (i.e. not able to be varied in the document item quantity)

• Can the item be varied (i.e. item quantity can be varied in the document)?

• Will the item contain more than one assembly?

• Can the item be used in all areas or is this area specific?

• Does the cost of the items vary between areas?

• Consider VPB structure (is the item house specific or is it a generic item)

• Will the retail price of the item be generated from formula or updated manually?

• VPB Standard Items vs. Table Items

The decision to use a standard VPB item or table item has to be made each time a new item is added to the VPB. A basic rule of thumb is to use a standard item for single variation items where no duplication exits (i.e. an item that applies to all house types or a house specific item) and to use a table item where the same item is repeated many times for different house types and has a different price for each item.

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If an item is going to be used as a variable unit of measure it is recommended that the assembly be set up as a base unit of 1.

Example:. if a VPB item for a roof tile upgrade is used there is no need to create dozens of assemblies for each house type as a single assembly can be used the assembly would be setup for 1m2 of roof tile upgrade.

The use of a table item would be the most suitable for this type of VPB item as the same description is used multiple times and the table structure is used to suit the multiple house types.

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For items that can be used only for specific house product or a variety of house product it is important to apply the validity of items.

Use validity to control the VPB item that are not applicable in specific areas where costs maybe unknown, or suppliers are unavailable (or have not yet been sourced)

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If formula’s are to be used to generate retail pricing of items, it is recommended that formula “Variables” be created to maintain consistency in formulas and a quick and easy way to change mark ups if required.

1. In the VPB Version screen click on edit and go to the variables tab

2. Click on new to add a new variable. (e.g. a variable for a 25% mark up can be named as such and a value of 1.25 input. A variable for GST of 10% can be named GST and a value input of 1.1)

3. Continue to add variables as required then click Ok when complete.

Multiple variables can be set to define different mark ups. This may be set as variables for 20%, 25%, 30%, etc..)

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Once all the above has been considered and implemented we can now run the Framework Sales Pricing Integration.

• Flow diagrams

• Project Plan (contact Insula Software to be provided with a specific project model of the implementation process for your environment).

• UATs & Signoff

• Training

• Go Live

Ongoing Management

1. It is important to remember that each time new assemblies are created and assigned to items in the VPB that these are replicated in the WMS database, assigned the appropriate communities and added to the relevant WMS Sales Worksheet.

2. Periodic running of integration to ensure current cost pricing is maintained. This is usually run to coincide with regular new issues of the VPB in line with published price lists.

3. Frequent release of VPB versions (even if sell pricing is not changing) for accurate margin analysis.