(Beta) Add Financial Markup to Main Contract Variations

Objective

To add financial markup to a variation.

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 variation 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 variation. 

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 variations 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 Main Contracts tool.
  • To view financial markup on the variation's Bill of Quantities (BOQ), 'Standard' level permission on both the project's Variations and Main 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  ERP Integrations tool: Show/Hide  
  • Integration by Procore: Viewpoint® Spectrum®: Vertical and Horizontal.
  • Integration by Ryvit: Viewpoint® Vista™. Vertical and Horizontal
  • QuickBooks® Desktop. Markup is NOT supported in data sync. 
  • Sage 100 Contractor®. Markup is NOT supported in data sync. 
  • Sage 300 CRE®: Vertical and Horizontal.
  • CMiC: Horizontal Only.

Prerequisites

• Add the Budget tool to your project. See Add and Remove Project Tools.
• Your company's Procore Administrator must do the following:
  • Complete the steps in Create Your Company's Default Work Breakdown Structure and Enable Sub Jobs for WBS.
  • Complete the steps in Create Your Project's Work Breakdown Structure and Add Sub Jobs to a Project.
• Enable Financial Markup. See Edit the Advanced Settings on a Main Contract.
• Create at least one (1) item. See Create Main Contracts.

Steps

1. Navigate to the project's Main Contracts tool.
2. Locate the main 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:
   
   • 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

     • To learn about the differences between markup types, see What is the difference between horizontal and vertical financial markup?
     • You can apply financial markup settings on a per-variation basis.
     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. 
   • Markup Percentage. Enter the percentage for the markup.
   • Compounds Markup Above. Move the toggle to the right to compound your new markup. This setting is turned OFF by default. 
6. Under Maps To, do the following:
   Budget Code. Select the budget code that the markup percentage will be applied to. To learn more, see What is a budget code in Procore's WBS? 
7. Under Application Conditions, do the following
   • Apply to all line items. This will set the markup to apply for all line items on the variation.
   • Apply to specific line items. Use this option when you want to apply the markup to specific line items based on their budget code.
     • Segment. Choose which segment (cost code/cost type) you want to use for the markup selection.
     • Conditional Logic. Choose 'Is' or 'Is not' to determine how the markup will or won't apply.
     • Value. Select cost codes or types (depending on the segment selection above) that you want the application rule to target. Sub job cost codes can also be selected.
       

        Note

       If an entire sub job is checked to be included in the markup application conditions, new codes added to that sub job after markup creation will NOT automatically be included in the existing markup conditions. You will need to edit the markup and check the new codes to be included.
        
8.  For companies using the  ERP Integrations tool: 
   • ERP Main Contract Item. Select the desired Bill of Quantities (BOQ) line item from the project’s Main Contract. This ensures that the estimated value (the BOQ value without vertical markup) and the revenue value (the BOQ 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 main contract variation.
   • Export Markup to Estimate. Select this tickbox to enable the ability to sync financial markup on a main contract to the cost estimate in ERP. This tickbox is only available to customers with the Sage 300 CRE® integration,  Integration by Procore with Viewpoint® Spectrum® or Integration by Ryvit with Viewpoint® Vista™ . 
9. Click Save.

See Also

• Edit the Advanced Settings on a Main Contract
• Add a Partial Budget Line Item
• What are Procore's default cost types?
• Add Company Cost Types