How do I handle more than two decimals in a Cost Plus Fee Schedule?
Fee Calculation Methods are used in calculating the fee amounts on Cost Plus contracts. The Fee Factor is entered on the Accounting tab on the CP Project Profile. By default, Unanet only stores two decimals in this field. If you have a requirement to calculate a fee that goes out more than two decimal places (i.e., 7.442%), then the following solution will work in your fee calculation.
The calculated fee is a result of the Actuals Formula (in Admin > Setup > Fee Calculation Methods) multiplied by the Fee Factor (on the Accounting tab in the Project Profile).
If you were to enter 7.442 into the (Project Profile > Accounting tab) FEE(S) - FACTOR field, Unanet would trim it to 7.44 as in the first screenshot below.
To resolve, navigate to Admin > Setup > Fee Calculation Methods to set up a method called "Fee on Labor Divide by 10." In the ACTUALS FORMULA, insert Total Mapped Labor (or Total ODC's or Total Cost, depending on how your fee should be calculated) and divide that item by 10.
Then, On the Accounting tab on the Project Profile, select the new Fee Calculation Method called "Fee on Labor Divide by 10" you just created.
Enter a FACTOR that is ten times your regular factor (e.g., 74.42% for a fee of 7.442%) so that the calculation provides the desired results.
This will result in a more precise calculation of the fee. In the scenario below, the Total Labor is $37,436.45 multiplied by 7.442% which equals $2,786.02.
If you have a Fee Calculation Method that is based on Hours, select "Percent" for the FACTOR TYPE on the Accounting tab of the Project Profile (instead of "Number") and convert the FACTOR number to percent accordingly to calculate the fee appropriately.
(Note that when adding a fee on labor hours, the FACTOR TYPE used is typically “Number” instead of “Percent.” However, if more than two decimals are needed for the number of hours used to calculate the fee, translating the number of hours to a percent and choosing the "Percent" FACTOR TYPE allows you to carry out to the additional decimals needed to get the correct fee).
Number Fee Factor = .3366
Percent Fee Factor = 33.66
Note that if the FACTOR is changed during the life of a project, fee adjustments will be posted accordingly.