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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

Using the financial markup options in Commitments tool, project teams can choose between two types of markup:

  • Horizontal Markup. Calculating markup on individual line items.
  • Vertical Markup. Applying markup on the for all of a change order's line items. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Commitments tool.
  • Prerequisites:
  • Additional Information:
    • The markup will distribute itself proportionally to each line in the change order's Schedule of Value (SOV) and will be applied to the cost codes and categories on those SOV lines in the budget.
    • Horizontal markup will be included in the subtotal of the SOV and will be included in the vertical calculation if the markups are used in conjunction. 
    • Commitment change orders using financial markup cannot be added to subcontractor invoices.

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.

    financial-markup.png
  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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