Financial Markup - Overview

Updated 2 weeks ago by Customer Service

Suggested Prior Reading

Financial Markups

Financial Markups can be setup to

Apply to Schedule of Values in JobPlanner (such as Contracts and Commitments)
Can be automatically copied from the Contract or Commitment to any Change Orders for the Contract or Commitment
OR specific Financial Markups can be created just for the Change Order
Any Change Requests will automatically have the Financial Markups applied from the Contract.
Any Invoices will automatically have the Financial Markups included in the values.

Anywhere Financial Markups are maintained, the information entered and the functionality is the same, although there may be some differences in when the Financial Markups can be added or changed depending on the status of the item.

Financial Markups are very configurable and are used to automatically apply a markup to each line item on the Schedule of Values to which they are associated. For example, overhead or administration and/or they are sometimes used to automatically apply sales taxes (see Job Costing - Sales Tax for more information).

Generally, as long as the Schedule of Values can be added/edited, the Financial Markups can can also be added to or edited.

Financial Markups are one for one with the Schedule of Values. If a Schedule of Values is created, Financial Markups can be created and apply only to that schedule of values. However, they can be copied to Change Orders.

Once Financial Markups are created for that Schedule of Values, they are automatically applied to all the line items on the Schedule of Values (as applicable). Financial Markups can not be changed during the add or edit of the Schedule of Values as they are automatically applied.

If Financial Markups are changed, the change is applied to a whole to all the line items on the Schedule of Values.

Number of Financial Markups

As many types of Financial Markups as required can be setup. Each one can be configured differently.

All Financial Markups setup will apply to every line item (as applicable).

For example, there are three financial markups setup for the Schedule of Values, three financial markups will be applied to every line item. However, the display and calculation of the Financial Markups for the line item depends on the settings for that Financial Markup.

Display of Financial Markups

A Financial Markup can be set to display as

A column on each individual line item with the markup value for that line item. If there is more than one Financial Markup setup this way, a separate column for each will display on the line items.
A total in the totals section (so that the individual line item markup values do not appear)
A separate line item on the Schedule of Values with the totals for all the line items or for the associated Cost Code(s) and Cost Type(s) line items.

See Financial Markup - Calculation and Display for more information and examples.

Calculation of Financial Markups

Financial Markups are based on the Amount for the line item. Depending on the Accounting Method used, this amount may or may not be displayed on the Line item.

If the Accounting Method is set to Amount Based, the line items will have a single Amount column that is entered during the creation or edit of the line item by the Project Manager. This is the Amount the Financial Markups are calculated on.
If the Accounting Method is set to Unit-Qty Based, the line items will have a Quantity, Unit and Unit Price that is entered during the creation or edit of the line item by the Project Manager. These are all multiplied together to get the Amount. However that Amount doesn't display as a column by itself. The Amount displays in the Subtotal column but will also include any Financial Markups (if the Markup is configured to appear on the line item).
See Schedule of Values - Line Item - Amount for more information.

Associate to Cost Codes and Cost Types

Financial Markups can be associated with all Cost Codes and Cost Types or set to apply to only certain Cost Codes and Cost Types (so will only be applied when a Schedule of Values line item has that Cost Code and/or Cost Type).

Associate to Parent/Sub Jobs

Financial Markups can be associated with Parent or Sub Jobs (if Sub Jobs are turned on for the project). See Sub Jobs - Overview.

Compounding

If there is more than one Financial Markup, compounding can be applied so the Financial Markup is calculated on the Amount plus any previous Financial Markups applied. See Financial Markup - Compounding for more information and examples.

The order the Financial Markups display impact how the compounding works (with the first item in the list being calculated first, and then that value is used in the calculation for the next item and so on). To set the order, see Financial Markup - Setting the Order.

Changes Only

A Financial Markup created for a Contract or Commitment can be set to apply only to Change Orders or Change Requests. See Financial Markup - Apply to Changes Only.

More Information

For more information on Financial Markups see:

Financial Markup - Where Used

Financial Markup - Calculation and Display

Financial Markup - Compounding Examples

Financial Markup - Vertical Examples

Next Steps

Add Financial Markup, see Financial Markup - Add.

Edit Financial Markups, see Financial Markup - Edit.

Set the order the Financial Markups display or are used in Compounding, see Financial Markup - Setting the Order.

Delete a Financial Markup, see Financial Markup - Delete.