faq raw material cost total material cost What is the difference between Raw Material Costs and Total Material Costs?

When running estimate reports you may see raw material costs and total/loaded material costs. When you set up a material item you will notice a shipping factor, warranty factor and a purchasing tax option. These are not mandatory for setting up a material item, although it may be necessary for certain types of materials.

  • Shipping factor: this is used if your vendor has some sort of shipping cost on top of their raw material cost. 
  • Warranty factor: generally used for softscape materials such as plants and trees. It is building in a markup to take into consideration the likelihood of having to replace some of those materials. In cased like hardscaping stone, salt for de-icing, gravel, etc... you would not need a warranty factor (or it will be very small) since these types of materials will not break/die and need to be replaced.
  • Purchasing tax: this is only used if you pay a tax when you purchase materials from your vendor. 

Raw material costs: the cost of your materials before the shipping factor, warranty factor and purchasing tax are included.

Total material costs: the cost of your materials after the shipping factor, warranty factor and purchasing tax have been added to the raw material cost. 

 

 

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