Here’s how your Project Contract can be setup for Cost Plus Billing in Project Operations –

So how does Cost Plus Pricing work? Simple Answer – Specify a Markup for the Sales price in terms of % based on what the Cost Price is.

So, when you enter the Sales Prices without having Cost Plus Pricing Enabled, you’ll see that you simply can enter the Sales Price of the Resource as shown below

Now, let’s see how you specify the Cost Plus pricing in Sales Price Lists so that it is driven off of the Markup of the % of the Cost Price.

Enable Cost Plus Pricing from Project Parameters

First, you need to enable Cost Plus Pricing in your Project Operations environment –

1. Given you have the correct access, navigate to Project Parameters settings in your environment and look for the Feature Control where it says that you can enable Cost Plus Pricing –
   
   
2. It’ll give you a warning that once this is enabled, you cannot disable it for the organization –
   
   
   
3. Now, when you try to add Role Prices in the Sales Price List, you can select this option –
   
   
4. And enter the % of the Markup you want to setup for Cost Plus Pricing.
   
   
5. In this case, my Markup is 25% of the Cost Price.
   
   
6. Now, my Cost Price for the Marketing Manager Role is $200.
   
   
7. Now, given that my Project Contract has Project Contract Line is this Role, the Amount will be determined based on this Markup. Here, I’ve quoted 100 hours for the Marketing Manager Role which makes the Cost Price as $20,000 and the Sale Price as $25,000.
   
   
8. Now, when the Unbilled Actuals is created, it’ll consider the 25% Markup for the Marketing Manager role and calculate the Billing Amount i.e. $250 which is a Markup of 25% on top of $200.
   
   
   

Hope this was useful!

Thank you!