Here I will continue my series of posts related to Field Service for Microsoft Dynamics CRM 2016, this time I will look at price lists.
The price list option within Field Service does make use of the standard CRM price list functionality but it has some important extensions that are specific to providing services. With field work it would be common to want to make the first hour of a visit not chargeable or have a minimum call out charge that is automatically added to the cost of a job. The extensions provide functionality to support these types of situations.
NOTE: Price lists are associated with work orders, however if you consume a product or service not included in the price list on the work order then the “list price” from the product will be used. It is very important to be aware of this.
Out of the box “standard” CRM offers the ability to process products based on a specific value or as a % markup / margin. Field Service extensions build on this logic to allow minimum charge amount / duration or flat fee.
Initially you create a price list in the normal way, giving it a name and currency. I’ve shown an example below;
Having created your price list, you then need to add price list items, which are the products or services you sell. Below is an example of my price list item.
Price list items are a standard feature of Microsoft Dynamics. They include the ability to base a price on list price, cost price, standard cost or simply to enter a value. Prices can be calculated as a mark-up or margin.
You can also define rounding rules and even create a discount list which gives a percentage discount based on volume. I won’t cover all of the possible options here as this is standard CRM stuff. But the options available are pretty flexible.
If you would like additional information on standard pricing options this post might help.
Just to explain the maths behind my example below. I have a standard cost defined on the product of £15. So a 200% markup gives me £15 + £15 * 200/100 = £45. But then the rounding is applied in multiples of £10. Giving me a sales price of £50 per hour. Got it???
Within Field Service you will have two types of items on price lists. Products and services. For products the options available on a standard price list item should be sufficient. But when we start to think about the pricing of services some additional options might be nice. To enable additional functionality a second entity of “Field Service Price list Item” has been added. So having added your standard pricelist item you can optionally add more details. You access Field Service Price List Items from the price list item navigation bar.
Before creating a price list item you need to ensure your product has been flagged as a product or a service. (Or it won’t be available to add to your work order.) You do this by setting the “Field Service Product Type” in the field service tab on the product. Products will be either “Non-Inventory” or “Inventory”. Whilst a service must be set to “Service”.
Tip: In my online trial solution I couldn’t initially see the “Field Service” tab on my product. This is because multiple forms exist on product. Make sure you are looking at the form called “Product” not the one called “Project Information”. (As I was to start with!)
Here is a Field Service price list item example, I’ve given a table below to explain these additional options.
To explain the pricing math …. I’ve already shown that my hourly rate has been calculated to be £50. Let’s assume 2 hours’ worth of gardening will be done. I have said the minimum charge duration is 30 mins. Giving 30 minutes “free”. So 1 ½ hours will be billed giving me £50*1.5=£75. But then the minimum charge value will be added on giving a price for the 2-hour job of £95. Got it???
|Name||This is simply a name for this item in the price list|
|Duration round to||Rounding for the duration. My entry of 30 minutes essentially means I will bill in 30 minute chunks.|
|Flat fee||Yes / no. Let’s you decide if a fixed fee for this service applies or if the billing is based on duration.|
|Minimum charge duration||Used to make x amount of time free|
|Product / Service||The product or service (typically service!) that this price list item relates to.|
|Duration Rounding Policy||Options include, none, up, down and nearest. It will be common in field service situations to always round up. In my example above, I round to 30 minute chunks and always up. Meaning if I spent 31 minutes on a job I’d bill one hour.|
|Minimum Charge Amount||Sets minimum amount for a visit, the value is added on to the final payment regardless of the amount of charged.|
|Price List||This is the price list that the FieldOne price list item relates to.|
Pricing can be a little fiddly to get set up how you want, I guess that is a by-product of it being so flexible! Initially you might find it simplest just to set a l;ist price on all of your products and services. Then only create price lists to support particular discount structures etc. J