Add Financial Markup to Commitment Change Orders

Objective

To add financial markup to a commitment change order.

Background

To learn about markup, see What is the difference between horizontal and vertical financial markup?

Things to Consider

• Required User Permissions:
  • 'Admin' level permissions on the project's Commitments tool.
• Additional Information:
  • Financial markup is distributed proportionally on each line item in a change order's Schedule of Values (SOV).
  • Financial markup is applied to the cost codes and categories on those SOV lines in the budget.
  • Horizontal markup is included in the SOV's subtotal and is included in the vertical calculation when the markups are used in conjunction. 
• Limitations:
  • After you apply financial markup to a commitment change order, the change order cannot be added to a subcontractor invoice. 

Prerequisites

• Enable Financial Markup on a Commitment

Steps

1. Navigate to your project's Commitments tool.
2. Click the Contracts tab. 
3. Locate the purchase order or subcontract to work with. Then click its Number link to open it. 
4. Click Financial Markup. 

    Notes

   • If the 'Financial Markup' tab is NOT visible, check the More menu to see if it is listed.
   • If 'Financial Markup' is not available in the More menu, the feature is likely disabled on your project. To learn more, see Enable Financial Markup on a Commitment.    

• Under Financial Markup Settings, you have these options:
• Add Horizontal Markup. Click this button to display the markup in the same row as the line items. 
• Add Vertical Markup.  Click this button to display the markup below the line items. 

   Notes

  • To learn about the differences between markup types, see What is the difference between horizontal and vertical financial markup?
  • You can apply financial markup settings on a per-change order basis.
  This opens a page when you can then create your markup.  

Enter information in the Add Horizontal Markup or Add Vertical Markup window as follows:

• Markup Name. Enter a name for the financial markup. 
• Markup Percentage. Enter the percentage for the markup.
• Calculation Type. Select the calculation type for the financial markup you are creating.
  • Basic Calculation. Percentage is multiplied by the line items that meet the application criteria. 
  • Compounds all Above. Percentage is multiplied by the line items that meet the application criteria and all the markups above in the markup table. 
  • Selective Compounding. Percentage is multiplied by the line items that meet the application criteria and any individually selected markups. Once you choose 'Selective Compounding', you will select which of the existing financial markups to include in the calculation.
  • Iterative Calculation (Margin). Percentage is multiplied by the line item total, including all markups.
• Application Criteria. These conditions determine how the markup will apply to your change orders and change events.
  • Apply to all line items. Financial markup will apply to each line item on a Prime Contract Change Order.
  • Apply to specific line items. Financial markup will apply only to specific line items on a Prime Contract Change Order or Potential Change Order. Markup estimates on change events will also only apply to the selected line items. You will be given the following options to determine which line items the markup will apply.
    • Segment. Choose between 'Cost Code' or 'Cost Type'.
    • Conditional Logic. Choose between 'Includes' or 'Excludes'
    • Values. If 'Cost Code' is selected, click Select Values to choose which cost codes will apply towards the financial markup. If 'Cost Type' is selected, choose one or more cost types from the drop-down menu.  
• Under 'Applies To' in the Cost Types box, all available cost types are listed by default. See What are Procore's default cost types? and Add Company Cost Types. To remove one or more cost types, click the 'x' next to the desired selections.
• Click Save.

See Also

• Create a Commitment Change Order