The figure type is the pricing method you specify when you create a contract: either gross profit or discount. If you did not specify a gross profit or discount, the figure type is the list price.
The system uses the figure type to calculate the remaining two price fields. Suppose that you specified a discount of 10 percent for this contract. This discount is the figure type. The system takes 10 percent from the list price to determine the contract price, and also calculates the gross profit based on this discounted price.
The system identifies the figure type for each item by displaying an asterisk next to it.
When you specify a new discount or gross profit percentage, the system makes the field you specified the figure type for that item. If you specify a contract price, the system prompts you, so that you can indicate which field you want as the figure type.
When your costs and list prices change, you can update your contracts by refiguring. The system will use the figure type for each item when you do this. If gross profit is the figure type, the system uses the updated cost when recalculating the contract price. If discount is the figure type, the system uses the updated list price when recalculating the contract price. To learn more about refiguring contracts, see the online help topic Updating Contracts by Refiguring.