Financials Tab in Sherpa

 

General Overview: The Financials Tab is where you put the financial information together to finalize a solution.  This is where you will determine what kind of profit you can put into your solution, what type of leasing option you will use, determine buyout amounts, and edit any service costs or additional fees.  If you are bundling MPS with equipment, this is also where you put it all together.  

Moving Through the Equipment Data Column:

 

The Equipment Data column is where you enter in the preliminary financials to create a proposal for the client.  Start by entering a profit margin in the Profit Margin % field, and then continue to go down the column and fill in the necessary information.  Several fields will already be populated with data for you, based off your selections in the Product Configurator and the pricing your Administrator has set up as defaults in the system.  All fields are editable here, except for Service Term, Mono Base and Color Base, which are grayed out.  If you do choose to edit a field or fill it in manually, a check box to the right of the field will automatically check, indicating that the field has been edited, or that the default information set by the Administrator was not used; these check boxes cannot be checked or unchecked manually.

For Sale, Lease and CPP options, it is important to choose the correct option because it effects how your financials are calculated!  See the last page of this section for more details:

Sale Option Only:  Select this bubble if you want to generate a Cash Sale.

Lease Only:  Select this bubble if you want to generate a non-CPC lease.

Cost Per Page:  Select this bubble if you want to generate a CPP lease.  

 

Update Button: Click this if you make any changes in Product Summary.  If changes have been made, the button will also turn red.  Once you click it, your updated costs will be brought over.

Cost:  The equipment out cost based off whatever pricing level was selected in the Product Configurator.  This field will auto populate based on the Product Configurator Data. 

Profit Margin %:  Enter the percentage of profit you want in the deal.  Compass calculates your profit based on margin, not mark up.  Ex: a $10,000 out-cost with 20% Gross Profit Margin would be calculated by 10,000 / .8 = $12,500 sale price    

Lease Rate: If you have selected either the Lease Only or Cost Per Page option, then you must enter in a lease rate.  You can also use the Lease Calculator button, where your company will have already loaded in the rates, lease companies, and terms to easily select from. 

Lease Contract/Term: The duration of the lease in months.  This field will auto populate if you used the Lease Calculator.

 Lease Calculator button:  Your Company can maintain your current leasing company’s lease rates/terms/options.  Use this option to quickly get the correct lease rate for your proposal.

    

 Selecting Lease Option:  The right side of the lease calculator will contain the list of leasing companies, options, terms and rates.  Double click on the desired one to view the monthly payment in the lower left of the screen.  You can also filter through the lease options by using the Lease Option Filter section.  Choose to filter by Region, Option, Company, and Term by choosing from the dropdown lists.  Click Accept to transfer the lease rate and term, or Cancel to exit the form.       

Selecting PPT (County Tax) if applicable:  If you need to account for county tax along with your lease rates, then use the PPT Tax County drop down to select the proper county.  Most leasing companies will have already accounted for this, and built it into their standard lease rates.

Mono Volume: The proposed black volume for the hardware as originally selected in the Product Configurator.

Color Volume: The proposed color volume for the hardware as originally selected in the Product Configurator.

Mono Service Rate: The blended mono service and supply rate for all the equipment combined. 

Total Mono Payment: This is the product of the mono volume multiplied by the Service/Supply rate    

Mono Overage Rate:  This is the blended mono overage rate charge for all the equipment combined.    

Color Service Rate The blended color service and supply rate for all the color equipment combined.

Note: if a mono or color machine has no volume then the service rate in financials won’t appear. The suggestion is to put a volume of 1 on the machine, in Solution Configurator in the volume area so that the service pricing appears.

Total Color Payment: This is the product of the color volume multiplied by the Service/Supply rate.  

Color Overage Rate:  This is the blended color overage rate charge for all the color equipment combined.

How the Blended Service Rate is Calculated: For Example - You configure a machine for 10,000 pages at .0089 and one for 50,000 pages at .0104.  The blended rate in Financials is .01015 - how did it calculate the number?

0.0089 * 10,000 = 89.00
0.0104 * 50,000 = 520.00
89.00 + 520.00 = 609.00
609.00 / (10,000 + 50,000) = 0.01015

How the Blended Overage Rate is Calculated:
        Total Overage = (Overage Rate * Quantity) + (Overage Rate * Quantity) +  … (you do this for each model)

        For Example - If you have 2  machines with a .0081 overage, 2 with a .0159  overage, and 1 with a .0085 overage, the          blended overage rate would be .0113.
        The calculations would go like this: ((.0081 * 2) + (.0159 * 2) + (.0085 * 1)) / 5 = .0113

Addl. Charges/Buyout:  Use this field to add any additional misc. charges or any machine buyout charges.  If entering a buyout, you may also use the Buyout Calculator button.  

Buyout Calculator Button: Used to automatically calculate an estimated buyout amount.  You can type in the equipment details, monthly payment, initial term, remaining payments, Sales Tax (monthly) and return shipping costs.  Click the Add button when done.  This will automatically place the estimated buyout total into the Addl. Charges/Buyout field for you.  When done click on the Close button.

 Install Charges:  Any installation charges should be entered in this field.  Your Compass Administrator does have the option of entering in an installation charge into the Admin section of the software, in which case this field would already have the total install charges populated.  

Connect Fee:  Any connectivity fees should be entered in this field.  Your Compass Administrator does have the option of entering in connectivity fees into the Admin section of the software, in which case this field would already have the total connect fees populated.

Service Term:  The billing frequency of the contract as selected in the Product Configurator    

Mono Base: Any base service charges as entered the Admin area for BW output.  This number is not based on the minimum monthly volume and service rate; this is a base charge in addition to the mono volume you chose  

Color Base: Any base service charges as entered in the Admin area for Color output.  This number is not based on the minimum monthly volume and service rate; this is a base charge in addition to the color volume you chose.

Contract Service: This is a module that by request can be turned on and adds checkboxes in Solution Summary to select items you’d like to mark as “Contract Services.”  These items will pull their out-cost to a new field in Financials for Contract Services, which is not included in the margin calculation.  

Note: Contract Services used to calculate by dividing by the lease/contract term. It now multiplies by the lease rate.            

Calculate Financials Button:  When you are done with reviewing and adding information into the equipment data column and making any necessary changes, click on this button to have the Financials calculated for you.  The final financials based on this information can be seen on the right side of the screen under the Financial Summary section.

Center Section

   

Mono and Color Allocation %: If including a CPP financial option as part of the proposal, the allocation allows you to offset some of the lease payment onto the color volume, thus decreasing the perceived Black CPP and increasing the Color CPP.  Compass will always default the allocation to the black output 100%.  

Mono and Color Output Subtotals:  

Any of the fields in this section that are not grayed out (volume, New GP %) is editable by you to manipulate the financials and come up with different financial proposal options.    

CPP (Cost Per Page): This reflects what the client would be charged for a CPP Contract.  For this option to be calculated, you must have selected the Cost Per Page option under the Equipment Data.  On color machines, both BW and Color Cost Per Page fields will calculate.  You can click your cursor directly into the field and change the CPP number.  When done, either hit the TAB key on your keyboard or click into another field to allow the system to recalculate, this will update the financial calculations.      

Sale Price:  This reflects what the client would be charged for a Cash Purchase price on the new equipment.  If you wish to only generate this financial option, you must have selected on the Sale Option Only option under the Equipment Data.  You can click your cursor directly into the field and change the Sale Price number.  When done, either hit the TAB key on your keyboard or click into another field to allow the system to recalculate, this will update the financial calculations.  

Lease Payment:  This reflects what the client would be charged for a Lease Payment on the new equipment.  If you wish to only generate this financial option and a Cash purchase price option, you must have selected on the Lease Only option under the Equipment Data.  You can click your cursor directly into the field and change Lease Payment number.  When done, either hit the TAB key on your keyboard or click into another field to allow the system to recalculate, this will update the financial calculations.  

Volume:  This is the total proposed volume as selected in the Product Configurator and Printer Pricer, if you are bundling the MPS with new hardware.  This field is un-editable in this field.

Total Payment:  This is the sum of the lease payment and the monthly service total.  This is an editable field and you can simply type in a total monthly payment if you know what you want the payment to be.  When done, either hit the TAB key on your keyboard or click into another field to allow the system to recalculate, this will update the financial calculations.    

Gross Profit:  This shows you the estimated GP based off the financials.  As you change any of the financial fields, this will change to reflect what the new GP would be estimated at.

New GP (Gross Profit) Percentage:  This is an un-editable field.  This  shows you the estimated GP % based off the financials.  As you change any of the financial fields, this will change to reflect what the new GP % would be estimated at.

Bundle Printers

This is where the data from Printer Pricer will show if you chose to transfer the MPS portion of the solution to Financials Tab and bundle it all together.  Start by clicking on the Transfer Printers button on the top of the screen to bring over the financial information from Printer Pricer.  These fields can also be manually typed into if you didn't use the Printer Pricer area, or, to edit once transferred over.

    

Volume Added: Shows the totals for the Mono and Color printer volume being added to the contract.        

CPP Rate:  This is your company’s service/supply rate to maintain the account’s fleet of printers.

Monthly Service:  This is the monthly cost to service/supply the account’s fleet of printers.  It is a product of the volume multiplied by CPP rate.    

What the Calculate buttons do:  Will add the owned print volume to your financials and add in the additional GP.

 

How Bundling is Calculated: When bundling MPS with Equipment sales, Compass calculates the entire volume of the contract based on the CPC of the hardware, and puts any profit from the prints on the GP of the total contract.
For Example:

Hardware Cost:
Eq. Cost: $10,000
Lease Rate:        .02        
Lease Months: 60
Black Volume: 5,000
Color Volume: 500
Mono Service/Supply: .01
Color Service /Supply Rate: .10

Here are the results on a basic equipment contract (when using Cost Per Page radial dial):
Cost Per Page: .05 Mono / .10 Color
  Calculation Mono: $250.00 / 5,000 (Total Mono Payment / Black volume)
     Calculation Color: $50.00 / 10,000 (Total Color Payment / Color volume)
Lease Payment: $200.00
      Calculation:        $10,000.00 x .02 (Sale Price x Lease Rate)
       Total Payment: $300.00
  Calculation:  $200.00 + $50.00+$50.00 (Lease Payment + Service/Supply Payment for Mono and Color)

In this Scenario we have a .05 cost per page on black and .10 color, without adding any profit.

Here are the results when you bundle the prints:
Mono Printer Volume Added: 50,000
Mono CPP Out-cost on the prints: .03

Color Printer Volume Added: 3,000
Color CPP Out-cost on the prints: .09

 
By bundling the prints, we were able to keep the cost per page at .05 and .10 while tripling the profit margin to over 80%

The Calculations:
First, we increased our volume from 5,000 in black, to 55,000 in black and 3,500 in color by adding the prints from the existing printers.  Using the same CPP rate of .05 and .10, we increase or total payment:

• Cost per Page = .05
• Total Payment ($3,100.00) = (.05 * 55,000) + (.10*3,500)

Then we determine the lease portion of the payment by deducting the service portion of the MFP and the Printers (this cost of course goes to the Service Department to cover their costs):

• Lease Payment ($1,230.00) = Total payment ($3,100.00) – Service and supplies copier ($100.00) – Service and supplies for printers ($1,770.00)

To determine the new Sales Price, we divide the lease payment by the lease rate:

• Sale Price ($61,500.00) = Lease payment ($1,230.00) / Lease rate (.02)

Our Profit is our Sales Price minus our Out-cost on the equipment:

• Profit ($51,500.00) = Sale Price ($61,500.00) – Out-cost ($10,000.00) – Install & Connect Fees ($0)

Clear/Reset Button:  This button will reset/recalculate the financials         based off the original information as entered in the Equipment Data column on the left.  If you click on this button, it will clear the bundled printer volume data.   If you do click on this button and want to re-add the printer volume, click on the Transfer Printers button on the top of the Financials tab and then Calculate under the Bundled Printers section for Mono and Color Output.

Financial Summary: This is an un-editable section, but it will show you broken down numbers of the summary of the financial details for your proposal.  

Total Sale Price:  This is the equipment Sale Price.

Total Lease Payment:  This is the straight lease payment with no service.

Total Mono Service Payment:  This is the BW service Payment on the new equipment being proposed.  This is a monthly financial number.

 Total Color Service Payment:  This is the Color service payment on the new equipment being proposed.          

 Total Print Service Payment:  This is the total payment for any print volume added to a CPC contract.

  Bundled Payment:  This is the sum of the Total Lease Payment and Total  Service Payment fields.

   Total Revenue Credit:  This represents the Total Sale Price minus the Addl.  Charges/Buyout, Install Charges and                 Connect Fees fields.    

    Total Gross Profit:  Represents the total Gross Profit for the proposal.

    Total GP (Gross Profit) Margin:  Represents the total estimated GP Margin  % for the proposal.

Contracted Volume Summary: This shows a breakdown of the total contracted volume based on mono and color copies and mono color bundled prints   

        Mono Volume: The total BW volume being proposed on new machines

        Color Volume:  The total Color volume being proposed on new machine

        Mono Prints:  The total BW Print volume for the owned equipment’s  maintenance Agreement.

        Color Prints:  The total Color Print volume for the owned equipment’s  maintenance Agreement

        Percent of Retail (MSRP): The percentage of your sale you are over the MSRP.

Multi-Financials: When multiple financials are created, you can populate multiple lease terms and payments onto a template proposal.  If a proposal template is created with bookmarks to handle multiple financials, check the Multi-Financials box before you populate the proposal using the Word icon.  If you are not sure that you have a proposal to populate multiple financials, check with your Compass Administrator.

 

Options Buttons (Across the top of the screen) 

Copy: This allows you to duplicate the financial to create multiple financial options.   You can rename additional financial options on the bottom right of the screen by simply typing in the field.

 

Add a New Financial: Creates a new financial, duplicating the Cost only, allowing you to create multiple financials.

Delete Financial: Allows you to delete the selected financial.  Scroll to the financial you want to remove using the arrows on the bottom right of the screen and click the X.

Transfer Printers: Transfers in the CPC and Volume of whatever printers you transferred to Printer Pricer, and places it in the Bundle Printers area.

Calculator: This launches your Windows Calculator.

Forecast Proposal: When you have come up with a final solution for proposal, use this button to create your forecast.  

1. Enter a Forecast Name (Not required).  If you want to update an existing opportunity with the new data, check the selection box next to the opportunity you want to edit.  This shows any opportunities that currently exist in the Opportunities area in the Accounts Tab.

2. Your name will automatically be in the Sales Rep 1 field.  You can split the forecast with up to 2 other Reps by choosing their name from the drop down and assigning a percentage of the deal to them, and Compass will automatically calculate the split.         

3. From the dropdown, choose the Close % Ratio.  This refers to how sure you are that the account will close by or on your estimated close date, or based on the description coinciding with the %.  

4. Select your expected close date.  

5. Enter commission amount expected

6. When done, click the Forecast button

Submit Order: This is used to submit a closed sale into the Order Processing module (see Order Processing under the Additional Modules section for instructions).

SalesScoreKeeper: The SSK buttons are the integration to SalesScoreKeeper.  If you are a SalesScoreKeeper customer and have the integration, click the Submit to SSK button to submit your deal and launch the SSK website.  
Until you submit your deal, the red Not Submitted message will show up.
If you want to see your deal in SSK after it has already been submitted, click the Go To SSK button.

Reports

Financial Summary: Shows the financial details for the proposed equipment costs, for each financial created.  This will also show if any costs have been edited in the equipment data column.

Financial Details: Shows a breakdown of all the financial information; Includes new equipment details, existing equipment being placed under a Print Management agreement, service rates used, install and connect fees, and will also show if any costs have been edited in the equipment data column.

Note: Under the "Financial Calculations Summary" section, you will see the service rate that the rep used.  Under the "Company Rates Used" section you will see the service rate that is default in the Admin Equipment Pricing area, that originally showed before the user changed it.

Executive Summary Report: Shows an Analysis Report which contains the Customer’s Objectives, Challenges, Current Equipment and Costs, Graphs, Current Situation vs. Proposed Solution, ROI, and Recommendations.

When you click on the Executive Summary button, the following form will come up:

Choose your Objectives and Challenges by placing a check in the checkbox next to ones you want and clicking on the button.  To delete an already selected choice, highlight it on the right-hand side of the screen and click the    button.  You can also type in custom Objectives and Challenges in the Custom Item field.  To add a custom objective to the Executive Summary, click the  button.  To remove a custom objective or challenge highlight it on the right-hand side and click the  button.  You can now delete it or edit it on the left-hand side of the screen.

To add a recommendation, type your wording on the Custom Recommendations and Solution Benefits box and click the  button.

To change the order or any Objectives, Challenges, or Recommendations use the   buttons.

After you’ve made your choices, click the Crystal Report or Word template button.  Crystal Report will populate an Executive Summary in Crystal Reporting, and Word will allow you to browse for a Word Template.

Evolved Office: If you are an Evolved Office Customer and have the Compass integration you will see 2 additional options in the Reports area:

Evolved Office Document Download - After you have submitted your proposal to Evolved Office you can view it here.

Evolved Office Submit Proposal - Use this to submit your deal and launch the Evolved Office website to create your proposal.

Sending to Excel Template: Allows you to auto populate an Excel template for internal paperwork, or for Client presentation.  A file browser window will open for you to browse and select the template you wish to populate with data from Compass.  After finding the template, you can either double click on it to start the population process, or click on it once and then click on ‘open’.

Sending to Word Template:  Allows you to auto populate a Word template for either internal paperwork, or for Client Presentation.  A file browser window will open for you to browse and select the template you wish to populate with data from Compass.  After finding the template, you can either double click on it to start the population process, or click on it once and then click on ‘open’.

If you are using our Document Storage Feature, for both Word and Excel populated templates, you can choose to save them directly back to Document Storage. Hit the save button in the populated document.   You will then be asked if you want to Save Manually, Save to Document Storage, or if you have DocuSign send directly to DocuSign. Check the box and hit Save

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Step-by-Step Process: (See Illustration on next page)

1. If you are doing a Fleet Management deal and taking on service of owned printers, click on the Printers button to transfer all the selected printers from the Printer Pricer to the Financials.
2. Select a financial option checkbox (Sale, Lease, or CPP).
3. Move down through the Equipment Data column and enter in all necessary information if it didn’t auto populate.  
4. Click on the Calculate Financials button.
5. If desired, make any edits to the financials in the middle section of the Financials tab.  Remember, when making edits, use the TAB key of your keyboard to update the changes, not the ENTER or clear/reset button.
6. Click Calculate Mono/Color in the Bundle Printers section if doing a Fleet Management deal.
7. To auto populate a proposal, select on either the Excel or Word button, or use the Executive Summary option in Reports.
8. Forecast the Proposal.

Financial Calculations:

It is important to choose the correct sales option when pricing out your solution to calculate the financials correctly.  For example, choosing Cost Per Page will give you a different Sales Price than if you were to choose Lease Only or Sale Option.  Below are examples of how each choice calculates in Financials.

Sale Only Option

• Adjusted Profit Margin = (100 – Gross Profit Margin) / 100
• Sale Price = (Equipment Cost / Adjusted Profit Margin) + Buyout Charges + Install Charges + Connect Fees
• Gross Profit = Sale Price – Equipment Cost – Buyout Charges – Install Charges – Connect Fees
• Mono Service Payment = Total Mono Payment + Mono Base
• Color Service Payment = Total Color Payment + Color Base
• Total Revenue = Sale Price – Buyout Charges – Install Charges – Connect Fees
• Total Gross Profit Margin = (Gross Profit / Total Revenue) * 100
• Adjusted Profit Margin = (100 – Gross Profit Margin) / 100
• Sale Price = (Equipment Cost / Adjusted Profit Margin) + Buyout Charges + Install Charges + Connect Fees
• Gross Profit = Sale Price – Equipment Cost – Buyout Charges – Install Charges – Connect Fees
• Lease Payment = Sale Price * Lease Rate
• Mono Output Total Payment = Lease Payment + Total Mono Payment + Mono Base
• Color Output Total Payment = Total Color Payment + Color Base
• Total Revenue = Sale Price – Buyout Charges – Install Charges – Connect Fees
• Total Gross Profit Margin = (Gross Profit / Total Revenue) * 100

Lease Only Option

• Adjusted Profit Margin = (100 – Gross Profit Margin) / 100
• Sale Price = (Equipment Cost / Adjusted Profit Margin) + Buyout Charges + Install Charges + Connect Fees
• Gross Profit = Sale Price – Equipment Cost – Buyout Charges – Install Charges –Connect Fees
• Lease Payment = Sale Price * Lease Rate
• Mono Output Total Payment = Lease Payment + Total Mono Payment + Mono Base
• Color Output Total Payment = Total Color Payment + Color Base
• Total Revenue = Sale Price – Buyout Charges – Install Charges – Connect Fees
• Total Gross Profit Margin = (Gross Profit / Total Revenue) * 100 

CPP Option

Here are the financial calculations for a CPP Option (not including bundled printers) that Compass calculates behind the scenes.

• Adjusted Profit Margin = (100 – Gross Profit Margin) / 100
• Sale Price = (Equipment Cost / Adjusted Profit Margin) + Buyout Charges + Install Charges + Connect Fees
• Mono Sale Price = Sale Price * (Mono Allocation / 100)
• Color Sale Price = Sale Price * (Color Allocation / 100)
• Mono Lease Payment = Mono Sale Price * Lease Rate
• Color Lease Payment = Color Sale Price * Lease Rate
• Mono CPP = (Mono Lease Payment + Mono Total Payment) / Mono Volume
• Color CPP = (Color Lease Payment + Color Total Payment) / Color Volume

Below are the Financial Calculations that you can match to your financials tab for a CPP Option.

Next, the Mono CPP and Color CPP are rounded to 4 decimal places and values are back calculated to match the rounded CPP rates.

• Mono Output Total Payment = (Mono CPP * Mono Volume) + Mono Base
• Color Output Total Payment = (Color CPP * Color Volume) + Color Base
• Mono Lease Payment = Mono Output Total Payment – Mono Total Payment – Mono Base
• Color Lease Payment = Color Output Total Payment – Color Total Payment – Color Base
• Mono Sale Price = Mono Lease Payment / Lease Rate
• Color Sale Price = Color Lease Payment / Lease Rate
• Mono Gross Profit = (Mono Sale Price + Color Sale Price – Equipment Cost – Buyout Charges – Install Charges – Connect Fees) * (Mono Allocation / 100)
• Color Gross Profit = (Mono Sale Price + Color Sale Price – Equipment Cost – Buyout Charges – Install Charges – Connect Fees) * (Color Allocation / 100)