Create Cost Factor Lists

You can create a cost factor list to include internal costs or external costs, but a list can't contain both.

An external or an internal cost factor list are a set of cost factors that are commonly used together. Once cost factors are placed on a list, you can apply the list to a negotiation line, and all the cost factors on the list are carried over to the line. After you have applied to the line, you can delete cost factors that aren't required or add additional cost factors as appropriate. Applying cost factor lists enables you to quickly associate a large number of cost factors with a negotiation line.

For example, Vision Corporation is expanding into a new branch of items and services. Negotiations dealing with this new area need to negotiate new transportation-related costs with suppliers. External cost factors, Shipping, Hazardous materials charge, and Import tax are already defined and a new external cost factor list has to be created.

Define an External Cost Factor List

1. From the Task panel on the Negotiations work area, click the Manage Cost Factor Lists link.

2. On the Manage Cost Factor Lists page, click the icon to add a new list.

3. On the Cost Factor List page, enter the Shipping List as the cost factor list name and Common shipping charges as a description. Select type as External.

4. Click the plus sign icon, or select Add from the Actions menu.

5. When the new line appears, click in the Cost Factor field for the line. From the drop-down menu, search for and select the cost factor appropriate for the new list. The pricing-basis and description for the cost factor is set and can't be changed. Add the cost factor named Shipping to the list and then use the plus icon to add Hazardous materials charge and Import tax to the list.

   The external cost factors with pricing basis of Per unit, Percentage of line price, and Fixed amount can be created.

6. When finished adding cost factors, save the list.

Define an Internal Cost Factor List

For example, Vision Corporation also wants to apply internal cost factors for the set of suppliers who are responding to a negotiation. The internal cost factors, Logistics, Project management, and Established Supplier are created, and a new internal cost factor list has to be created.

1. From the Task panel on the Negotiations home page, click the Manage Cost Factor Lists link.

2. On the Manage Cost Factor Lists page, click the icon to add a new list.

3. On the Cost Factor List page, enter MyOrgIC as the cost factor list name and internal cost factors as a description. Select type as Internal.

4. Click the plus sign icon, or select Add from the Actions menu

5. When the new line appears, click the Cost Factor field for the line. From the drop-down menu, search for and select the cost factor appropriate for the new list. The pricing basis and description for the cost factor is set and can't be changed. Add the cost factor named Logistics to the list and then use the plus icon to add Project Management and Established Supplier to the list.

   The internal cost factors with pricing basis of Per unit, Percentage of line price, Percentage of response amount, and Fixed amount can be created.

6. When you have finished adding the cost factors, save the list.