Estimate Pricing Method Overview

Estimate Pricing Methods provide a flexible and transparent way to price your estimates. They function as selectable pricing engines that determine how costs, rates, and margins are calculated.

Each pricing method is powered by an Apex plugin created using the ConfigurablePricingPlugin API. This framework surfaces your custom pricing logic as a selectable option in the user interface. This enables you to immediately see the impact of your custom code on values directly in the Estimate Builder, offering a clear view of how pricing is determined. For more information, see Plugins Overview.

There are three default methods:

  • Cost Plus
  • Time and Materials
  • Baseline

You can apply them to your estimate products and independent records. You can create custom pricing methods using custom Apex code. For more information, seePermission Sets and Other Technical Documentation.

If you do not select an estimate pricing method, the estimate product or independent record calculates the price depending on the billing type of the record. For Time and Materials records, this would default to Time and Materials, and for Fixed Price records, this would default to Cost Plus.

The Fixed Price Margin (%) field is only editable when the Cost Plus pricing method is selected. Dated Bill Rates can only be used with the Time and Materials pricing method.

When an independent record uses the Cost Plus pricing method, the calculation depends on its relationship to a line set. If it is a child of a line set, the price is determined by the Cost Plus strategy, utilizing the Fixed Price Margin (%). If it is not part of a line set, the calculation reverts to the default Time and Materials method.

Note:

If you change the pricing method, you must save the Estimate Builder before making further updates to discounts. This ensures all dependent calculations and field updates are applied correctly.

Cost Plus

When using the Cost Plus pricing method, the bill amount for each role request is calculated automatically based on the cost amount and the fixed price margin. Users can edit the Fixed Price Margin % field at the estimate, estimate product, or line set level. The lowest-level record in the estimate hierarchy takes priority, so a margin set on a line set overrides one set on an estimate product, which in turn overrides one set on the estimate.

The bill amount is derived using the following formula:

Bill Amount = Cost Amount ÷ (1 − Fixed Price Margin %)

For example, if the cost amount is $100 and the fixed price margin is 30%, the bill amount is $142.86.

Bill rates and net bill amounts at the role request level are read-only, as they are derived from the margin.

The following table explains field behaviors in the Estimate Builder when using the Cost Plus pricing method.

Field Edit Permissions using Cost Plus Pricing Method
Column Name Record Type Description
Fixed Price Margin % Estimate, Estimate Product, Line Set Editable. The lowest level record takes priority: line set overrides estimate product, which overrides estimate.
Cost Amount Role Request Read only. Calculated from cost rate × hours.
Net Bill Amount Role Request Read only. Calculated from the cost amount and fixed price margin.
Bill Rate Override Role Request Not used. The bill amount is determined by the cost amount and fixed price margin, not the bill rate.
Note:

Dated bill rates cannot be used with the Cost Plus pricing method.

Time and Materials

When using the Time and Materials pricing method, the bill amount for each role request is calculated from the bill rate and the number of hours. Users can edit the bill rate directly on each role request, either by entering a bill rate override or by updating the suggested bill rate. If both are present, the override takes priority. If neither is set, the bill rate defaults to zero.

The bill amount is derived using the following formula:

Bill Amount = Bill Rate × Hours

Discounts can be applied at the estimate, estimate product, estimate task, or role request level. When a discount is applied, the net bill amount reflects the discounted value:

Net Bill Amount = Bill Amount × (1 − Discount %)

The following table explains field behaviors in the Estimate Builder when using the Time and Materials pricing method.

Field Edit Permissions using Time and Materials Pricing Method
Column Name Record Type Description
Bill Rate Override Role Request Editable. Takes priority over the suggested bill rate when set.
Suggested Bill Rate Role Request Editable. Used to calculate the bill amount when no override is set.
Hours Role Request Editable
Net Bill Amount Role Request Read only. Calculated from bill rate × hours, minus any applied discount.
Margin Role Request Read only
Discount % Estimate, Estimate Product, Estimate Task, Role Request Editable
Note:

Dated bill rates can only be used with the Time and Materials pricing method. They are not available with Cost Plus or custom pricing methods. Dated bill rates cannot be combined with discounts.

Baseline

When using this pricing method, users can manually edit the total bill amount at the line set level. Bill Rate column values are hidden in the builder and the bill amount is calculated using weighted distribution across the role requests based on hours. The Baseline Price set at line set level on a template is copied through to the related estimate line sets.

The bill amount carries through accurately to quotes via the Salesforce CPQ and Salesforce RLM connector.

The Baseline Price cannot be a negative value.

The following table explains field behaviors in the Estimate Builder when using the Baseline pricing method.

Field Edit Permissions using Baseline Pricing Method
Column Name Record Type Description
Net Bill Amount Line Set Editable. Defaults to the template Baseline price or zero if no Baseline price is set on the template.
Net Bill Amount Task / Role Request Read only
Bill Rate All records Read only
Margin (%) Task, Role Request Read only
Margin (Amount) Task, Role Request Read only
Discount (%) All records Editable
Tip:

When using the Baseline pricing method, it is only recommended to discount at estimate, estimate product, or line set level. This helps to maintain consistency across your estimate.

Editable Fields Using Pricing Methods

Field Edit Permissions by Estimate Pricing Method
Estimate Pricing Method Net Bill Amount Margin (%) Bill Rate Discount (%)
Cost Plus (on Estimate Products) Editable on estimate product level Editable on estimate product level Read only Editable on estimate product level
Cost Plus (on Independent Records) Read only Editable in the Details tab Read only Editable in the Details tab
Time and Materials Read only Read only Editable on role request level Editable
Custom Read only Read only Read only Editable
Notes:
  • For estimate products that use the Cost Plus pricing method, discounts can only be applied at the estimate product level.
  • For independent records that use the Cost Plus pricing method, discounts can only be applied at the estimate level.
  • When a project is created from an estimate, the selected pricing method will be reflected. However, any subsequent changes to the estimate pricing method or related Apex logic after the project has been created will not be reflected in the project.
  • Dated resource bill rates can only be used with the default Time and Materials pricing method. They are not compatible with Cost Plus or custom pricing methods. Dated resource cost rates can be used with any estimate pricing method.
Tip:

To ensure consistent totals across reports and milestones, we recommend using baseline amounts that are evenly divisible by your headcount or role hours. If an uneven split occurs, we preserve the decimal precision in the background, which may result in minor rounding variations in some instances.