Invoice and salary calculation

This article explains how the invoice and salary can be calculated.

In the Collective agreement, you can define the rules for salary and invoice calculation.

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Note

For more information, see this article Introduction to collective agreements and how to create them.

Invoice calculation

  • Example 1: The ordinary invoice price is set at 100 for the job.
  • Example 2: The ordinary invoice price is set at 340 for the job.

Factor

Factor calculation multiplies (times) the original invoice price by a factor.

Calculation: Original invoice price * factor = invoice price

Note

Usually, a factor of 1.00 is applied if the prices set for the job are valid for the rule.

If you set the invoice factor to 1.00:

  • Example 1: 100 * 1.00 = 100
  • Example 2: 340 * 1.00 = 340

If you set the invoice factor to 1.35:

  • Example 1: 100 * 1.35 = 135
  • Example 2: 340 * 1.35 = 459

In addition

The original invoice price is increased (plus) with an additional amount.

Calculation: Original invoice price + addition = invoice price

If you set an addition of 50:

  • Example 1: 100 + 50 = 150
  • Example 2: 340 + 50 = 390

Fixed value

The fixed value overrides the ordinary invoice price that is given to the job.

If you set a fixed value at 275:

  • Example 1: 275
  • Example 2: 275

Markup salary factor

The salary markup factor is a factor that is multiplied (times) by the salary.

Calculation: Salary after calculation * markup factor = invoice price

Note

The salary against which the markup factor is calculated is the salary after the salary has been calculated. If the ordinary salary is set at 100 and this has a factor of 1.50 (e.g., 50% overtime), the calculation becomes (Salary * 1.5) * markup factor.

If you set the invoice markup factor to 1.6, the original hourly salary to 100 and the hourly salary factor to 1.50:

(100 * 1.50) * 1.6 = 240

Markup factor salary increase

Markup factor salary increase takes original invoice price adds (pluses) given factor multiplied (times) by the salary increase.

Calculation: Original invoice price + (hourly salary after calculation * markup factor salary increase)

Example with an ordinary hourly salary of 100 and an ordinary invoice price of 200.

In this example, the salary calculation factor is 1.5 (typically at 50% overtime), and the markup factor salary increase is 1.60.

Hourly salary: 100

Invoice price: 200

50% overtime salary = hourly salary * 1.50 = 150 in hourly salary

50% overtime invoice = invoice price + (((hourly salary * 1.50) - hourly salary) * 1.60) = 280

Salary calculation

  • Example 1: The job's ordinary hourly salary is set at 100
  • Example 2: The job's ordinary hourly salary is set at 240

Factor

Factor multiplies (times) the ordinary hourly salary by a factor.

Calculation: Ordinary hourly salary * factor = hourly salary

If the factor is set to 1.00:

  • Example 1: 100 * 1.00 = 100
  • Example 2: 240 * 1.00 = 240

If the factor is set to 1.50:

  • Example 1: 100 * 1.50 = 150
  • Example 2: 240 * 1.50 = 360

In addition

The ordinary hourly salaries given to the job are increased (plus) with an additional amount.

Calculation: Ordinary hourly salary + additional sum = hourly salary

If the addition is set at 15:

  • Example 1: 100 + 15 = 115
  • Example 2: 240 + 15 = 255

If the addition is set at 87.50:

  • Example 1: 100 + 87.50 = 187.50
  • Example 2: 240 + 87.50 = 327.50

Fixed value

Fixed value overrides ordinary salary. Regardless of what the job's salary is set at, the salary for this rule will be set at a given fixed value.

If you set a fixed value at 120:

  • Example 1: 120
  • Example 2: 120
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