Cost markups - Supplier and Sub-Contractors

Apply a markup to supplier or sub contractor expenses. This will ensure the cost plus amount is charged to your client - making the invoice process a breeze. Supplier expenses would be project costs such as airfares, printing, accommodation costs, equipment hire. Sub contractor expenses would be carried out by a sub contractor for services that may form part of the project agreed fee, or would appear as a separate item on the invoice.   

Getting Started

Who Can Use It?	Where Is It?
Director System Administrator	Practice > Rates

Set the markup rate

Where is it? Practice > Rates

1. Double click the Supplier or Sub contractor description .
2. Set the Markup rate.

   

3. Save.

Example

The markup is required to set a profit on project related costs.  A sub contractor may provide you with a quote for $5,000. When the expense is allocated to the project, you will select the appropriate markup rate and the system will automatically recognise the markup is to be applied. So if the markup is 20% a $6,000 rate value will appear in the project financials and also transfer to the invoice.  

Create new markups

Where is it? Practice > Rates

Additional markups give you the flexibility to store multiple markup rates, so not having to set a specified markup rate on the project itself.  Markups can be entered with 2 decimal places. The descriptions could be something like Supplier markup 10%, Supplier markup 15.25%, Supplier markup 0% or by description of particular clients.  When entering an invoice expense, you will have the ability to set which markup should be applied to each line entry.

1. Click New .
2. Select Sub contractor markup or supplier markup .
3. Type a description.
4. Set a markup percentage.
5. Save and close.

More information

Effective date

Set when the rate will take effect.   Everything entered before the effective date will be at the previous markup.

An effective date sets the item cost and charge from a particular date. All Transactions allocated to the item prior to the new effective date will be calculated using the previous cost and charge and all transactions allocated from the effective date will be calculated at the current cost and charge - until such time a new effective date is set. 

Description

The description for either of these rates can be changed. 

Allocation of expenses

Supplier and sub contract expense types are entered via Projects > Expenses (invoices/bills). During entry of the Expense, you will select a Markup Rate when the Invoice is being disbursed against a project. The markup % set within the markup rate will be applied to the Expense Cost automatically, though you won't see this occur when disbursing the Expense.  

Where has the rate been allocated

To find out which projects the markup has been used for budgets - select Action, then Project budget list.

Want to learn more?

Looking for more help? Try reviewing the following Practice topics: View Topics

Or try reviewing the following Rates topics: View Topics

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