Hi!
We have an arraingement with some customers, that we share cost information openly with them, and then add a specific and previously decided margin on top of the cost. This is however not an easy thing to set up in IFS Cloud, and we use custom reporting as well as lists to keep track on who did what service work as well as the hours, and the real costs of the service work. Then all orders/invoices need to be manually checked and the corrected.
Does IFS have any modules/processes to support Open book frameworks?
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An open-book arrangement between a supplier and customer means the supplier shares cost information openly with the customer.
Instead of only quoting a fixed price, the supplier may show details such as:
- material costs
- labor costs
- overheads
- logistics costs
- profit margin
The purpose is to create transparency and trust. The customer can see how the price is built, and both sides can discuss fair pricing, cost savings, and efficiency improvements.
It is often used in long-term partnerships, complex projects, or situations where costs may change over time.
In simple terms: the supplier “opens the books” so the customer understands the real cost structure behind the price.”