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Administrator Guide
Last Updated: 2023-06-23
Concept: Calculations for Set Target Discount and Price

Concept: Calculations for Set Target Discount and Price

Workday allocates the Target Price based on the Unit Price to distribute the new price or discount amount proportionally across line items and roles based on the weight of the line.
When you change the
Target Price
:
  • New Unit Price
     = (Target price * (% of Price)) ÷ Quantity
  • When a role or item line unit price is 0, Workday can’t calculate a new price for that specific line, therefore the unit price for the role or item will remain 0 for any subsequent calculations (unless the user manually edits the unit price for this role or item).
When you change the
Target Discount
:
  • New Target Price
     = (Total Unit List Price * (1 - target discount)) ÷ Quantity
  • New Unit Price
     = (New Target Price * (% of Price)) ÷ Quantity
  • The
    Discount
     becomes
    0
     when the
    Unit List Price
     changes to
    0
    .
  • Calculation for
    Target Margin
    remains the same. Workday continues to use the same unit cost base for calculations. Margin
    Target
    price = (cost / (1 - margin)
  • If you have 2 role lines with the same role in the same service, but the role lines have different unit prices, then Workday automatically sets the unit price to be the same for both the roles when you set/change the target price because a contract doesn't allow 2 different unit prices for the same r

Example

Refer to this example table for the distributed unit price calculation when you change the
Target Price
 or
Discount
 at the header.
Example: You set the existing unit price for a role or item as:
Role or Item Line
Quantity
Unit Price
% (Percentage of Total Price)
Unit List Price
A
1
200
200 ÷ 300 =
66.67%
400.00
B
1
100
100 ÷ 300 =
33.33%
400.00
Total
$300
100.00%
$800
When you change the
Total Target Price
 on the quote header from $300 to $500 then Workday automatically recalculates the
Unit Price
 as:
Role or Item Line
Quantity
New Unit Price (calculated proportionally)
Unit List Price
A
1
66.67 * (500) =
$333.34
400
B
1
33.33 * (500) =
$166.67
400
New Total
333.34 + 166.67 = $500
$800
When you add a
Target Discount
on the quote header of
10%
, the new values are:
  • Discount Amount: 10% of 800 = $80
  • New Target Price after discount: (800 - 80) = $720
Workday automatically recalculates the new
Unit Price
 as:
Role or Item Line
Quantity
New Unit Price (calculated proportionally)
Unit List Price
A
1
66.67 * (720) =
$480
400
B
1
33.33 * (720) =
$240
400
New Total
480 + 240 = $720
$800