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Add Financial Markup to Commitment Change Orders

Objective

To add financial markup to change orders that are associated with a Commitment (Purchase Order or Subcontract).

Background

The financial markup feature allows you to build in a default markup on any of your change orders associated with a particular commitment contract. Within the tool you have the option to set the markup to be calculated on an individual line item or as a subtotal of all your line items on the change order. You can associate financial markup to cost codes, categories, and sub jobs to ensure that the money gained from markup on change orders goes to the correct place on the budget.

Things to Consider

  • Required User Permission: 'Admin' on the project's Commitments tool.
  • You can not associate financial markups to cost codes or categories if the Budget tab is not turned on.
  • If you do not select a Cost Code or Category to associate a financial markup with, the markup will distribute itself proportionally to each line in the Change Order SOV (Schedule of Values), and will be applied to the cost codes and categories on those SOV lines.

Prerequisites

The "Enable Financial Markup" checkbox must be selected in order to enable financial markups for change orders on that specific commitment or subcontract.

  1. Navigate to your project's Commitments tool.
  2. Click View next to the Purchase Order or Subcontract you want to change orders to have added financial markup on.
  3. Click More from the top menu.
  4. Select Advanced Settings.
  5. Select the "Enable Financial Markup" checkbox.
  6. Click Save.

Steps

  1. Navigate to your project's Commitments tool.
  2. Click View next to the Purchase Order or Subcontract you want change orders to have added financial markup on.
  3. Click the More drop-down menu.
  4. 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.

  5. 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.
  6. 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 - If this box is not selected, markup percentage is calculated on the change order subtotal. If the box is selected, markup percentage is calculated on the subtotal with the addition of any preceding markups.
  7. By default, the markup will apply to all categories, but you can remove any categories here.
  8.  Click Save.

 

 

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Last modified
08:57, 4 Apr 2017

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