Setting up expense markups

Use this procedure to set up expense rates using markups and optionally include any standard billing rates. To use only standard billing rates, see Setting up standard billing rates for expense.

About setting up expense markups

You can bill expense by increasing, or marking up, your cost. You set up expense rates using the Expense tab of the window, which consists of two parts:

• Markup boxes, which you use to set up any markups that you want to apply to most cost rates or amounts.

• A table, which you use to set up exceptions to any markups by vendor and activity.

1. Before setting up expense rates, first enter general information to set up your billing rate table.
2. Click the Expenses tab.
3. Enter an amount in each expense markup field to apply that particular markup to all cost rates or amounts. Enter an amount as a percent. For example, to mark the cost up by 15%, enter 15.

If you do not want to apply any expense markups, enter zero here, and click the Pass Through check box in the table.  

4. Select the Accumulate check box if you want to apply the markup for a field on the calculated rate of the cost plus the previous markup amounts instead of on just the original cost rate. Example

   

   The cost rate for a transaction is $30.

   • The G&A markup increases the rate of $30 by 15% for a markup of $4.50 and a new rate of $34.50.
   • Because Accumulate is checked for Profit, the profit markup is applied on the new rate resulting from the G&A markup. The profit markup increases the rate of $34.50, instead of $30, by 5% for a markup of $1.73.
   • The result is a billing rate of $30 + $4.50 + $1.73 = $36.23.
5. Set up any exceptions, including standard billing rates, for the markups you just defined.
6. Set up consultant rates in one of these ways: using consultant markups or using a standard billing rate for consultants.
7. Click the Notes tab at the upper left part of the window, and type any notes for the rate table.
8. Add additional rate tables by repeating these instructions or copying a billing rate table.
9. Click Save.
10. Click Close.

See also

Setting up labor markups

Setting up standard billing rates for labor