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Procore

Add Financial Markup to Commitment Change Orders

Objective

To add financial markup to change orders associated with a commitment

Background

Financial markup can be a fixed amount or a percentage that shows the difference between the cost of a good or service and it's selling price. Using the financial markup options in Procore's Commitments tool, project teams can choose between applying a markup percentage (%) on financial line items:

  • Horizontal Markup. Applies a percentage for financial markup on individual line items in a commitment.
  • Vertical Markup. Applies a percentage for financial markup on all of the commitment's line items. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Commitments tool.
  • Prerequisites:
  • Additional Information:
    • Financial markup is distributed proportionally on each line item in a change order's Schedule of Value (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:
    • When you apply financial markup to a CCO, you cannot add those CCOs to your subcontractor invoices.

Steps

  1. Navigate to your project's Commitments tool.
  2. Click the Summary or Detailed tab.
  3. Locate the purchase or subcontract. Then click View.
  4. Click the More drop-down menu.
  5. Select Financial Markup. Here is where you can set up the default financial markup that will be applied to all change orders, but markups can be modified or removed on a change order by change order basis.

    financial-markup.png
  6. Click New Horizontal Markup or New Vertical Markup
    Horizontal markup will display the markup in the same row as the budget line items.
    Vertical markup will display the markup below the budget line items.
  7. Enter information in the Markup List:
    • Markup Name. Enter in a name for the financial markup. 
    • Markup Percentage. Enter in the percentage for the markup.
    • Compounds Markup Above. Choose from these options:
      • Place a checkmark in this box to calculate the markup percentage on the subtotal with the addition of any preceding markups. 
        OR
      • Remove the checkmark from this box to calculate the markup percentage only on the subtotal of the change order. 
  8. Choose the cost types to apply the markup to in the Applies to Cost Types area as follows:   
    • By default, the markup will apply to all cost types listed in the Applies. However,  you can remove it from the Cost Types , but you can remove any categories here.
  9.  Click Save.

See Also