Setting up consultant markups

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

About setting up consultant markups

You can bill consultant labor by increasing, or marking up, your cost. You set up consultant rates using the Consultant 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 consultant rates, first enter general information to set up your billing rate table.
2. Click the Consultant tab.
3. Enter an amount in each consultant 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 consultant 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 20% for a markup of $6 and a new rate of $36.
   • 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 $36, instead of $30, by 5% for a markup of $1.80.
   • The result is a billing rate of $30 + $6 + $1.80 = $37.80.
5. Set up any exceptions, including standard billing rates, to the consultant rates you just defined.
6. If you have not already set up expense rates, you can do so in one of these ways: using expense markups or using a standard billing rates for expenses.
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