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Service Pricing Method: Time & Material by Service Charge
In this tutorial, we'll walk through how to edit the service type and set the pricing method to Time and Material by Service Charge.
Step 1: Start by navigating to the Settings menu.
Step 2: Move your cursor to the Items column.
Step 3: Scroll down to the Service page.
Step 4: Double click on the service you wish to edit.
Step 5: A service pop-up will appear. Navigate down to the Pricing Method.
Step 6: Use the drop-down menu to select your preferred pricing method. If you choose Time and Material by Service Charge,
This means you're opting for the price to be calculated based on the cost of inventory, equipment, and the service charge per hour for the employees attached to the service. The price will update when the actual values of the service are entered. The formula used to dictate the price for the service is calculated using the following equation: (Act Hours * Service Charge) + (Equipment Hours * Equipment Charge) + (Inventory Consumption * Inventory Charge).
This pricing method is particularly useful when the labor needs to be charged at a different, usually higher rate per hour than the average service, making the employee unit price too low to use a Time and Material by Resource method.