Add Financial Markup to Commitment Variations

Objective

To add financial markup to the Commitment Change Orders (CCOs) associated with a purchase order or subcontract. 

Background

Using the financial markup options in the project's Commitments tool, teams can choose between applying a markup percentage (%) on all line items or individual line items:

• Horizontal Markup. Applies a percentage amount of financial markup to individual line items associated with a purchase order or subcontract.
• Vertical Markup. Applies a percentage amount of financial markup on all of the line items associated with a purchase order or subcontract. 

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:
  • When you apply financial markup to a CCO, you cannot add those CCOs to your subcontractor invoices.

Prerequisites

• Enable Financial Markup on a Commitment

Steps

1. Navigate to your project's Commitments tool.
2. Beta Under the Contracts tab, locate the purchase order or subcontract. Then click View.
3. Click the More drop-down list and select Financial Markup.
4. Set the default financial markup to apply to all of the associated change orders as follows:

    Note

   After applying the default markup to all line items, you can modify or remove the markup on each line item.
   
   
   1. Click New Horizontal Markup or New Vertical Markup. 

       Notes

      • Horizontal markup shows the markup in the same row as the budget line items.
      • Vertical markup shows the markup below the budget line items.
   2. Enter information in the 'Markup List':
      • Markup Name. Enter a name for the financial markup. 
      • Markup Percentage. Enter 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 variation. 
   3. Choose the cost types to apply the markup to in the Applies to Cost Types section. By default, the markup will apply to all cost types listed in the 'Applies to Cost Types' section. You cannot remove the markup from the 'Cost Types,' but you can remove 'Categories.'
5.  Click Save.

See Also

• Create a Commitment Variation (CV)
• Create a Commitment Variation (CV) with DocuSign