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Procore

(Beta) Add Financial Markup to Prime Contract Change Orders

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Objective

To add financial markup to a change order.

Background

In Procore, the term financial markup is used to refer to an increase that is applied to the cost of a product or service in order to arrive at its final cost. You can set two (2) types of markup on change order line items. 

  • Horizontal Markup. A horizontal markup calculates the markup amount on an individual line item. 
  • Vertical Markup. A vertical markup calculates the markup amount as a subtotal on all of the line items on a change order. 

In addition, you can associate your financial markup settings to cost codes, categories, and sub-jobs. This ensures that the financial markup on your project's change orders is reflected accurately on your project's budget.

Things to Consider

  • Required User Permissions:
    • To add financial markup, 'Admin' level permissions on the project's Prime Contracts tool.
    • To view financial markup on the change order's Schedule of Values (SOV), 'Standard' level permission on both the project's Change Orders and Prime Contracts tools. 
  • Additional Information:
    • If you do NOT select a cost code or cost type for the financial markup to map to, it will appear on the project's budget as:
      • Budget Code = None
  • For companies using the icon-erp-synced2.png ERP Integrations tool: Show/Hide  

Steps

  1. Navigate to the project's Prime Contracts tool.
  2. Locate the prime contract to work with. Then click its Number link.
  3. Click Financial Markup. 
     Note
    This tab is only available if it has been enabled in the appropriate tool's Advanced Settings tab. 
  4. Under Financial Markup Settings, you have these options:
    financial-markup-empty-state.png
    • New Horizontal Markup. Click this button to display the markup in the same row as the line items. 
    • New Vertical Markup.  Click this button to display the markup below the line items. 
       Notes
      This opens a page when you can then create your markup.  
  5. Enter information in the Markup List as follows:
    • Markup Name. Enter a name for the financial markup. 
    • Maps To. Select the budget code that the markup percentage will be applied to on your project's budget.
    • 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.  
  6.  For companies using the icon-erp-synced2.png ERP Integrations tool: 
    • ERP Prime Contract Item. Select the desired Schedule of Values (SOV) line item from the project’s Prime Contract. This ensures that the estimated value (the SOV value without vertical markup) and the revenue value (the SOV value with vertical markup) are synced to the line item that you specify in the integrated ERP system.
       Notes
      This field is only visible when:
      • Your company account has enabled the ERP Integrations tool.
      • The ERP Integrations tool is configured to use either the Integration by Ryvit or Sage 300 CRE®. 
      • You are creating vertical markup on a prime contract change order.
    • Export Markup to Estimate. Select this checkbox to enable the ability to sync financial markup on a prime contract to the cost estimate in ERP. This checkbox is only available to customers with the Sage 300 CRE® integration,  Integration by Procore with Viewpoint® Spectrum®, or Integration by Ryvit with Viewpoint® Vista™ . 
  7. Click Save.