Tasha's Top 10 New Features for D365 Project Operations: Feature 5

Cost Plus Pricing for Resource Time in D365 Project Operations

Number 5 in Tasha’s Top 10 New Features for D365 Project Operations: Support Cost Plus Pricing for Resource Time. This is HUGE. This feature is designed to enhance pricing flexibility and streamline financial management for professional services organizations.

What is it?

This new feature allows you to define line items in a sales price rate as a function of a related cost rate. By enabling these capabilities, D365 Project Ops supports contracting models like cost plus pricing. This means you can now derive your bill rates directly from the associated cost rates of your resources. You can add that markup directly to the cost for that specific resource!

Business Value

Many service-centric organizations determine their bill rates based on the cost rates of their resources. Empowering organizations to calculate these prices directly within Project Operations saves time, provides flexibility, and eliminates the need for external tracking sheets often used for these calculations. This ensures that your pricing models are accurate and aligned with your financial strategies.

Special Details

Currently, Project Operations supports the ability to define a bill rate across multiple dimensions. However, the cost was previously not a configurable option. With the new feature, you can include cost rates in your pricing configurations, enhancing the ability to manage and analyze financial performance effectively.

Using Cost Plus Pricing for Resource Time

Here’s a quick snip-it to help you get started with cost plus pricing for resource time in D365 Project Operations:

Configure Pricing- Navigate to Parameters > Estimate Pricing Options.
Select Pricing Method- Choose between On-Demand pricing or Real-time pricing based on your project needs.
Apply Rates- Set up cost rates and apply them to your resource time estimates.

By following these steps, you can leverage the full potential of cost plus pricing, ensuring that your billing process is both efficient and accurate.

Conclusion

Supporting cost plus pricing for resource time is a super powerful feature that enhances pricing flexibility and financial management in D365 Project Operations. By integrating cost rates directly into your pricing models, you can streamline the billing process, save time, and improve accuracy. If you have any questions or need further assistance, feel free to reach out!

Stay tuned for more updates and tips on leveraging the latest features in D365 Project Operations!

Happy Pricing!