The cost model for estimates based on a formula with parameters is generated on demand by the user. Click on the "More" toolbar button in your proposal/project or in the costing workbench and select "Generate Cost Model incl. Formula" > "Update Cost of Formula, WBS and Line Items" from the menu, as highlighted below. This will:

1. Re-evaluate and calculate the result for every labor, material, travel and other direct cost estimate which is based on a parametric formula, sizing input or cost estimating relationship
2. Check to see if the cost model is complete, i.e. whether all your estimates are ready to be costed
3. Summarize the total estimated direct + indirect cost on each WBS in your project
4. Roll the estimated cost up your Work Breakdown Structure to view in the "Cost Estimate (Rolled-up)" column
5. Update the cost of each asset or proposal line item based on the WBS / line item percentage allocations
6. Update the bill of material unit cost based on all estimated material costs for that component or part number
7. You can also see the status of the cost model update procedure and when it was last run (highlighted below).

Please note the following considerations:

1. Individual labor, material, travel and ODC estimates not based on a formula are not re-calculated from this menu option, to save time. If you want to force every estimate in your proposal to be re-evaluated then select 'Update Entire Cost Model' from the exchange rates popup 'Update Rates' button menu. You should do this when you modify something like the proposal currency, exchange rate or modify one or more of the escalation or indirect costing rates, any of which can impact the cost of your proposal
   • Because cost model generation is an intensive process, care should be taken not to run it too frequently, especially when re-generating the entire cost model as mentioned in the previous bullet point
   • Cost model generation may take up to 15 minutes to run, in the background. Reload your screen data to see the resulting costs
2. Formula-based labor and other direct cost may be based on the result of another formula; for example "Travel is 15% of onsite labor including Program Mgt. Office labor which in turn is 15% of all system engineering and testing labor". Maintain the rank or sequence in your formula to ensure that they are processed in the correct order, as:
   • No sequence (or rank = 1) for formulae which do not depend on the results from any other formula
   • Rank = 2 for formula which depend on the result of only no-sequence or rank = 1 formulae
   • Rank = 3 for other formula which depend on the result of ranked 2 and higher formulae
3. "Update All Costs and Prices" (shown above) is the same as "Update Cost of Formula, WBS and Line Items" with the additional step of recalculating the price of every proposal line item.

In the example above the formula for Program Mgt. Office labor would have rank = 1 and for travel, rank = 2.