Skip to main content

Allowances

An allowance is a budgeted amount for products the customer will select later.

Why Use Allowances?​

  • Customer hasn't decided on specific products yet
  • Want to close the sale before finalizing every detail
  • Let customers choose within their budget
  • Clearly communicate what's included in the price

Setting an Allowance​

When you add a component that requires selection:

  1. Mark the component as Allowance or Selection Required
  2. Enter the Allowance Amount - the budget included in the estimate
  3. The allowance amount is included in your estimate total
  4. Customer will later choose the specific product

Example​

For a kitchen countertop allowance:

  • Allowance: $3,500 included in estimate
  • Customer selects: Granite at $4,000
  • Difference: $500 upgrade charged to customer

Allowance Reconciliation​

When customer selections differ from allowances, the system tracks the impact.

Within Allowance​

If the customer selects an option at or below the allowance:

  • No change to estimate total
  • Selection is recorded
  • Allowance covers the cost

Example:

  • Allowance: $2,000
  • Selection: $1,800
  • Impact: $0 (covered by allowance)

Upgrade (Over Allowance)​

If the customer selects an option above the allowance:

  • Difference is added to estimate
  • Customer must approve the upcharge
  • Clear communication of additional cost

Example:

  • Allowance: $2,000
  • Selection: $2,500
  • Impact: +$500 upgrade

Credit (Under Allowance)​

If the customer selects below allowance, company policy determines handling:

  • Some companies credit the difference
  • Some companies retain the difference
  • Configured in your company settings

Example:

  • Allowance: $2,000
  • Selection: $1,500
  • Credit: $500 (policy dependent)

Best Practices for Setting Allowances​

  • Be realistic - Base allowances on typical customer choices
  • Research costs - Know actual product pricing in your market
  • Build in buffer - Allowances slightly above minimum avoid surprise upcharges
  • Communicate clearly - Explain what the allowance covers