OA/VA Adjustment

Updated December 29, 2021

The OA/VA Adjustment stands for Overall Value Added Adjustment which increases the overall Sell Price AFTER the estimate is increased by the markup amounts BUT before Commission.

 

 

The formula for OA/VA adjustment is;

 

[ Production Cost + ( Production Cost * Production Markup ) ] + [ Material Cost + ( Material Cost * Material Markup ) ] + [ Paper Cost + ( Paper Cost * Paper Markup ) ] + [ OS + (OS * OS Markup) ] = Estimate Sell Price

 

[ Estimated Sell Price + ( Estimated Sell Price * OA/VA ) ] * Commission A = Actual Sell Price

 

Example;

Production Cost : $1000.00 + 10% Markup	$1,100.00
Material Cost : $200.00 + 10% Markup	$220.00
Paper Cost : $400.00 + 30% Markup	$520.00
Outside Service (OS) : $100.00 + 40% Markup	$140.00
Estimated Sell	$1,980.00
OA/VA Adjustment : 30% ($1,980.00 * 1.3 = $594.00)	$2,574.00
Commission A : 10%	$257.40
Actual Sell Price	$2,831.40

 

OA/VA Adjustments can also be assigned to each of the quantity line which replaces the value on the Component Header for that quantity line. If the Quantity line has a 0 value than the value on the Component Header is used.