Orders are then placed with the component stock suppliers based on the quantity requirements that have been calculated. Product Pricing Calculator Template. The gross profit amounts in column G and J are calculated by deducting the product cost or what-if cost from the appropriate selling price in column E. The gross profit percentages in columns H and K are calculated by dividing the gross profit amounts in column G and J by the appropriate selling price in column E. The what-if selling prices in column L are calculated by applying the gross profit percentages in column H to the what-if costs in column I and therefore calculate what the selling price should be in order to sustain the same level of profitability if the price fluctuations that are included in the what-if costs come into effect. Track and compare vendor prices with this Excel template. Note that only the intermediate product quantities that are included in the previous column will have an effect on the calculations in this column because bought-in items contain no components. A product costing should be compiled for all manufactured products by linking the manufactured product and its components on the BOM sheet. For example, if the recipe of a manufactured product stipulates that a specified quantity in kilogram of a raw material stock component should be added during manufacturing, it will be easier to cost the product based on a unit of measure of kilogram even though the raw material component may be ordered from a supplier in bags. These columns contain formulas that are automatically copied for all the new components that are added to the Excel table on the BOM sheet. The determination of product pricing is the responsibility of the Product Manager, but many departments in a firm will want to influence this process, particularly Sales and Finance. The cost of goods sold by the company is $10000. The component purchase prices that need to be analysed should be entered in column E on the StockCode sheet. Free Product Pricing Calculator to Download. If the component is a bought-in product, the intermediate component cost of the product will be nil. The component what-if costs and the total what-if cost of the manufactured stock item are also compared to the appropriate product costs on the Costing sheet. Note: If you duplicate a stock component that is already linked to a particular manufactured product on the BOM sheet, the stock component will be also be duplicated on the product costing and result in an inaccurate product cost calculation. The selling price increases in column M indicate the percentage variance between the what-if selling prices in column L and the selling prices that are entered in column E. The following error codes may result from inaccurate user input on the StockCode, BOM, Forecast and Margins sheets and will be displayed in the Error Code columns. If you enter a what-if cost for a manufactured stock item, the cost will have no effect on the template calculations. If we include a yield of 80% in the product costing, we need to include the output weight (400g) as the input quantity in the costing. Product Description , Product UOM - these columns are included on the BOM sheet to enable users to view the description of the product codes that are selected in column A and to ensure that the correct unit of measure is used when entering component input quantities. These are the direct costs of producing the product. Easy instructions with our Quick Start Guide videos. Note: The Costing sheet can accommodate a maximum number of 30 components per manufactured product. Refer to the What-If Costs section of the instructions for more information on the calculation of what-if costs. Just brilliant!! Company A is a manufacturer of tables. If we use the Input basis in our product costing, an input quantity of 500g and yield of 100% should be entered (assuming that there is no meat yield loss prior to the start of the manufacturing process). Refer to the What-If Costs section of these instructions for more information on the what-if cost analysis feature. The following user input is required in the columns with yellow column headings: Product Stock Code - the stock code of the manufactured product to which the stock component should be added needs to be selected from the list box in this column. Component Stock Code - a component stock code needs to be selected from the list box in column B for each component that is used in manufacturing the product which has been selected in column A. Note that only the intermediate product quantities that are included in the previous column will have an effect on the calculations in this column because bought-in items contain no components. For more video tutorials, subscribe to my YouTube channel . Resume Templates 1210 Document(s) Power of … *Pricing Template and Cost of Goods Sold template, linked worksheets- for 100 or 1,000 items *Price up to 1,000 items in one file. Level4 Forecast - the stock quantities of all bought-in and intermediate products that are required in order to produce the Level3 Forecast quantities that have been calculated in the previous column will be included in this column. The labour rate is $10.00 per hour and a total of 400 beef burgers are produced during a shift of 8 hours. The quantity that represents one slice then needs to be entered in the Input Quantity column. WI I/M Comp Cost - if the component that is selected in column B is a manufactured product, the what-if intermediate component cost in this column is determined based on the what-if cost of the intermediate product which is calculated in column T. Note that the what-if component cost is calculated as the sum of all the what-if costs of components that are linked to the intermediate product on the BOM sheet. The components that are included in the product costing are based on the components that have been linked to the manufactured product on the BOM sheet and the component input quantities and yields are also entered on the BOM sheet. Purchase Price - the most important aspect of the purchase price is that it should be in the same unit of measure as the unit of measure that is specified in the UOM column. Note that only the components that are directly included in the finished product bills of material will reflect quantities in this column. All the what-if cost calculations in the template are automatically updated and you can view a comparison of all manufactured stock items on the StockCode sheet or view a comparison between the what-if cost and the product cost of a single manufactured stock item by simply selecting the appropriate stock item from the list box in cell A4 on the Costing sheet. Multiple stock components can be added to a single manufactured product in order to create a product costing which consists of multiple stock components. Level2 Forecast - the stock quantities of all bought-in and intermediate products that are required in order to produce the Level1 Forecast quantities that have been calculated in the previous column will be included in this column. The what-if costs are calculated and included in the what-if costings based on the what-if purchase price that is specified in column E on the StockCode sheet and the component input quantities and yields that are specified on the BOM sheet (the same input quantities and yields that are used in the product costings). The Margins sheet enables users to calculate the gross profit margins of all manufactured stock items based on the product costings and what-if costings. If any error codes are reflected in this column, the errors should be investigated and rectified in order to ensure that all template calculations remain accurate. What-If Cost - this column contains the what-if costs of each stock code. The Product Cost column therefore contains the product costs of all stock items. Definition: The inherent nature of a manufacturing process may result in the component quantity at the end of the manufacturing process being less than the component quantity that is introduced at the start of the manufacturing process. Select & buy any 3 templates at our special offer price of. Product costings should also be reviewed regularly based on the results of the usage measurement exercise. You can create multiple labour stock codes on the StockCode sheet if there are different labour rates for different staff members. Inventory control for quantities on hand. The columns with light blue column headings contain formulas that are automatically copied for all new stock components that are added to the Excel table. Inventory control with stock usage as cost of sales. Free Download Product Pricing Calculator (xls, 28KB) and Customize with our Editable Templates, Waivers and Forms for your needs. Quantity forecasts can be compiled by simply specifying the stock codes of the appropriate manufactured stock items in column A on the Forecast sheet and entering the quantities of each manufactured stock item on which the forecast should be based in column E. Note: The contents of the Forecast sheet have been included in an Excel table. The Costing sheet can therefore be used to view a detailed breakdown of all the cost components that are included in the product cost of any manufactured stock item. All prices are once-off and there are no annual or monthly fees for any of the templates, Buy the full versions of our Excel templates to get the Excel file with no passwords and no protected cells, Our global customer base consists of customers in more than 100 countries on 6 continents, Download the sample or trial version when reviewing these instructions. Benefits of pricing template It is the right of customer or client to know about the price range of goods or products before making purchases and pricing sheets are developed for this purpose. Remember that the Quantity Forecast calculations in this template can only be as accurate as the component input quantities and yields that are included in the product costings. The meat component cost is therefore calculated by dividing the 400g by 80% thereby effectively including 500g of meat in our beef burger product costing. Suitable for any type of manufacturing business, Create stock codes for all bought-in and manufactured products, Enter purchase prices and what-if costs for all bought-in products, Create bills of material for all manufactured products, Automated calculation of costing for all manufactured products, Includes requirements planning and stock usage forecast, Gross profit margins based on product and what-if costings, Accommodates multiple level bills of material (up to 7 levels). The list box includes all the stock codes that have been created on the StockCode sheet. You need to make sure that your given price should cover all costs and profits. Free Download of Product Pricing Calculator 1 Document available in PDF, Google Sheet, EXCEL format! Click to download the trial version (xlsm). Note: Components are listed on the product costing in the same order in which they appear on the BOM sheet. The what-if costs are calculated on the same basis as the product costs, but the what-if costs in column E are used instead of the purchase prices in column D for all stock components. The Costing sheet is compiled from the data that is entered on the StockCode and BOM sheets. Click to view screenshot images of the template. The BOM sheet also includes 22 columns with light blue column headings. Product Cost - if the component is a bought-in product, the component product cost will be equal to the component bought-in cost. Product Cost Formula Calculator Enter the items, choose the number of items in each selection and see the combinations generated automatically. Very much appreciated. Component Description , Component UOM - these columns are included to enable users to view the description of the component codes that are selected in column B and to ensure that the correct unit of measure is used when entering component input quantities. If our aim is to produce a 400g burger at the end of the manufacturing process, the quantity is based on the output after manufacturing. For example, if 10 components are required in order to produce a particular manufactured product, you need to add 10 different component stock codes in column B in 10 separate rows and repeat the product stock code in column A in each of these rows. Pricing is a term used by firms when setting the selling price of their products. Templates do not expire - yours to use forever! You can add a new stock component to the sheet by simply selecting the appropriate product code from the list box in the first empty cell in column A - the table will be extended automatically to include the new product code. Note that the product costing calculations incorporate an unlimited number of bill of material levels - the limit of 7 levels only applies to the Forecast calculations. This column should therefore be blank if all user input has been entered correctly. The columns with light blue column headings contain formulas that are automatically copied for all new stock codes that are added to the Excel table. The purpose of the BOM sheet is to create a link between stock components and manufactured products. Become a certified Financial Modeling and Valuation Analyst (FMVA)®FMVA® CertificationJoin 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari by completing CFI’s online financial modeling classes and training program! We have therefore implemented conditional formatting on the Costing sheet in order to highlight all duplicated components in orange in column I. 2 printable templates, samples & charts in PDF, Word, Excel formats. The what-if cost features have been added to the template to enable users to measure the effect that component price fluctuations have on the product costings of manufactured stock items. Pricing model is a great tool that helps a business or company in whole process of estimating the price for product or services. This is exactly what I am looking for! The purpose of each of these columns is as follows: Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. This is a digital download which means you can come back to update your pricing strategy as your business changes. We also recommend adding a calculation on one of the StockCode sheets that looks up the values in the other workbook based on the stock codes in column A - this will enable you to compare the product costings in the two workbooks on the same sheet. Thanks very much for your great products! Note that the what-if cost of the manufactured product that has been selected in column A will equal the sum of all the component what-if costs that are calculated for the particular product in this column. This markup calculator shows you how to compute the markup amount and percentage given the selling price and cost of purchase. All other what-if cost calculations are updated automatically. All the columns on the StockCode sheet with a yellow column heading require user input. Note: If there is a significant yield loss during the manufacturing process and the incorrect yield basis is used to determine the yield that is entered in column D, the product costing of the manufactured product may be inaccurate. Note that only the intermediate product quantities that are included in the previous column will have an effect on the calculations in this column because bought-in items contain no components. Pricing products can be difficult if you don't know where to start. It can be customized with personalized data, fields and values. Wholesale Price Calculator Excel Template Features: Easy to use Price Offer Template The Input basis refers to the component quantity that is introduced at the start of the manufacturing process, while the Output basis refers to the component quantity which remains after the manufacturing process has been completed. If a stock component is ordered from a supplier in another unit of measure, the purchase price should be converted to the unit of measure that is specified in the UOM column. The cost of a manufactured product is calculated based on the costs of all the components that have been linked to the product on the BOM sheet. If the component is a manufactured stock item, the bought-in price will be nil and the component cost will be based on the calculations in the intermediate columns. WI I/M Prod Cost - the what-if intermediate product costs of components are calculated by multiplying the what-if intermediate component cost of the component by the input quantity in column C and dividing the result by the yield in column D. The Costing sheet can be used to review individual product costings. The Costing sheet also includes calculations of the total product cost of the manufactured product (cell H4), the total what-if cost of the manufactured product (cell J4), the cost variance between the total product cost and the total what-if cost (cell K4), the product cost of each component (column H), the what-if cost of each component (column J), the component cost percentage in relation to the total product cost of the manufactured product (column I) and the difference between the product costs and what-if costs of each component (column K). Enter your name and email in the form below and download the free template … Level2 Forecast - the stock quantities of all bought-in and intermediate products that are required in order to produce the Level1 Forecast quantities that have been calculated in the previous column will be included in this column. The product costings are based on the purchase prices that are entered for all bought-in stock items and the bills of material (“recipes”) that are compiled for each manufactured product. The heading of the affected input column will also be highlighted in orange: Note: Input errors may result in inaccurate template calculations and it is therefore imperative that all errors are resolved before reviewing the product costings, quantity forecasts or profit margins. These are the direct costs of producing the product. As we've mentioned before, all stock items that are not linked to components on the BOM sheet are classified as bought-in stock items. Download free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates. As far as accounting is concerned, the product costs of the sold products are captured in the income statement, while that of the unsold product is reflected in the inventory of finished goods. Example: Direct overheads or distribution costs can also be added to the product costings by creating a stock code for each type of overhead. You therefore need to create a stock code for each manufactured or component product before you will be able to select the appropriate stock code from the list boxes in these columns. Customize the … If the yield that is entered in column D is based on an Input basis, the component quantity that is added at the beginning of the manufacturing process should be entered in column C. If however the yield is based on an Output basis, the component quantity that remains at the end of the manufacturing process should be entered in column C. This is because the input quantity is divided by the yield as part of the component cost calculation. The Product Costing Model is an excel template that helps you calculate simply how much it costs to make one each of your products. This description should enable users to easily distinguish between stock items. Note: The selling prices that are entered in column E should be exclusive of sales tax if the business is registered for sales tax purposes. Forecast - enter the finished goods quantities that should be used in order to calculate a requirements planning forecast. If the component is an intermediate product, the component cost will be equal to the intermediate what-if cost. For the purpose of this template, recipe (and therefore costing) units of measure carry more weight than the units of measure that is used by suppliers. The columns with light blue column headings contain formulas that are automatically copied when you add a new stock code in the first empty cell in column A. Markup Price = ($20000 – $10000) / 1000 3. Refer to the Quantity Forecast section of these instructions for guidance on how the forecast quantities are calculated. You can use this calculator to price orders that include complex markups or product discounts, and to create detailed invoices. * Raw Materials Inventory system – including pricing and COGS pages for 1,000 items and tracks the raw materials inventory that goes into each item. Error Code - the formulas in this column display an error code if there is a problem with the data that has been entered in any of the user input columns. Markup Price = (Sales Revenue – Cost of Goods Sold) / Number of Units Sold 2. Once-off pricing - no annual or monthly fees! We may know that on average 500g of minced meat is required in order to produce a 400g burger at the end of the manufacturing process - the 500g is therefore the Input based quantity. If the stock code that you selected is supposed to be a manufactured stock item, the fact that it is classified as a bought-in stock item means that no components have been linked to the stock item on the BOM sheet. These calculations are extremely useful for requirements planning or stock usage measurement purposes. The number of units sold by the company is 1000. The only user input that is required is selecting, entering or copying the appropriate stock code of the finished goods stock item into column A and entering the appropriate selling price in column E. Note: The contents of the Margins sheet have been included in an Excel table. Finance Template; Calculator Spreadsheet; Product Pricing Calculator; Product Pricing Calculator 1; Download Product Pricing Calculator 1 for Free . https://www.spreadsheet123.com/calculators/recipe-cost-calculator.html In order to add the labour component to the beef burger product costing, we need to create a stock code for labour on the StockCode sheet (in our example data, all labour related stock codes start with an "LB"), enter a UOM of hours for the stock code, enter the $10 per hour as the purchase price of the stock code, add the labour component code to the beef burger bill of material on the BOM sheet, calculate the production time (3 staff members multiplied by 8 hours in a shift and divided by the 400 beef burgers that are produced), enter the production time as the input quantity of the labour component on the BOM sheet and enter a yield of 100% on the BOM sheet. If you enter a purchase price or what-if price for a manufactured stock item, the input will have no effect on the costs that are calculated. As we mentioned before, the what-if cost features can be used to analyse the effect that component price fluctuations have on product costings. Note: The Forecast calculations that have been included in this template therefore incorporate 7 levels of bills of material. The unit of measure of the onions component is kilogram and we therefore need to calculate the input quantity of this component based on how many slices are included in a kilogram of onions. Stock Code - enter a unique stock code in accordance with the stock code convention that is suitable for your type of business. Refer to the Margins section of these instructions for guidance on how the profit margins are calculated on this sheet. You also need to ensure that your established price should assure your sales. It is therefore important to take the yield basis into account when determining the component input quantity that needs to be entered in column C. Example: If we use minced meat in the manufacturing of a beef burger, we have to decide on a yield basis before we can determine the appropriate input quantity that should be specified. The template automatically calculates total expenses, including taxes and shipping, and you can customize the sheet by adding rows for other fees or discounts. The first step in customizing the template for your business is to create a unique stock code for each stock component and finished (manufactured) product on the StockCode sheet. Aside from selecting the appropriate stock code, this sheet requires no user input. Note: You may also want to consider entering a calculation in the input quantity column because this approach may make it easier to determine how the input quantity has been calculated (if a calculation has been necessary). 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