TIP: EST $ Exceeded When Tech Is Added?

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SHOPLADY27
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TIP: EST $ Exceeded When Tech Is Added?

Post by SHOPLADY27 »

Sometimes when I add a tech to a labor line something pops up and says "the total will exceed estimate by" sometimes $.90 or $.86. I was wondering if this is normal and why the invoice amount goes up only sometimes after adding a tech? Any input is greatly appreciated, thank you.
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ricmorin
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Re:EST $ Exceeded When Tech Is Added?

Post by ricmorin »

It is not normal. Simply adding a tech to an existing labor line should not change the total.

Next time this occurs, look and see where the total changed. Is it on the labor side or the parts? Something is changing on you and it would be good to know what.
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SHOPLADY27
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Re: EST $ Exceeded When Tech Is Added?

Post by SHOPLADY27 »

I was writing an order and this time instead of the labor going up upon adding a tech it just did it after I wrote in the work performed box, haven't even added a tech yet or did anything with the hours or the labor rate. I have no idea why this is happening but I can't tell a customer it's one price out the door and then tell them it's gone up when they come to pick up even if it's a few cents. that just doesn't sit right with me, thanks again in advance for any help with this situation.
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Re: EST $ Exceeded When Tech Is Added?

Post by Silky7 »

This is an issue you will experience when using the Markup function and transferring labor items from the estimator. What happens is simply a matter of rounding, then re-calculation.

For example, if you set Markup to 7.5%, and have a labor rate of $98.50. You transfer in a labor item that is 1.6 hours on the estimator. This calculates as 1.6 * 7.5% + 1.6 = 1.72 hours. 1.72 @ $98.50 = 169.42. However, you'll notice the labor in manager rounds to the tenth of the hour, not the hundredth. So if/when you edit the labor item, it now takes the displayed value of 1.7 @ 98.50 = 167.45. The more small labor items you transfer, the more you'll see this.

However, because we're talking about a base mathematical principle of rounding, statistically the items will even out in the long run. The other options might include dropping the Markup and making the difference elsewhere, or making sure to re-calculate the line items before quoting the total to a customer.

Hope this helps.
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Re: EST $ Exceeded When Tech Is Added?

Post by ricmorin »

I remember something like that a few years ago now. I think one workaround was to have your labor rate NOT at even dollars. ie: not 88.00 but rather 88.23. Worth a try.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
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I find my life is a lot easier when I use Special Orders
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Re: EST $ Exceeded When Tech Is Added?

Post by SHOPLADY27 »

Ok so my labor rate is $88.00/hr with the mark up at 1%. Do you think if I changed it the labor rate to not be an even dollar amount that might fix it? I'll definately give it a shot and let you guys know the outcome. Thank you :D
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