Set material mark-upsLast updated on 03/23/2022
Set price mark-ups for your material items in your pricebook. Mark-ups are automatically calculated, making estimate and invoice building a smoother process.
The material mark-up table is located in the Materials section of your pricebook (Pricebook > Materials).
Required setup and instructions
When your account is configured for the material mark-up table, you have the option to select individual or aggregate mark-ups. With individual mark-ups, mark-up rates are applied at the individual item level. With aggregate mark-ups, the sum of material costs determines the material mark-up rate.
Use the material mark-up table with the Price Setup Wizard
The Price Setup Wizard uses the material mark-up table to calculate item prices for flat rate billing. If you charge for materials on invoices, you can also use the Price Setup Wizard to set customer-facing material prices.
Note: When you enter new mark-ups, they are not instantly applied. You must run the Price Setup Wizard to apply the changes.
Use the material mark-up table with time and materials billing
If your account is set up for time and materials billing, the material mark-up table is used to bill customers for the materials charge. On the customer-facing invoice, there's a single line item for material charges. Customers do not see mark-up rates or mark-up amounts.
How the material mark-up table impacts payroll
If you're using the default payroll settings in ServiceTitan, the material mark-up table will not have any impact on payroll calculations. However, ServiceTitan does allow you to charge technicians a cost mark-up, if you need to mark up costs when calculating technician commission. To apply a cost mark-up on payroll, go to Settings > Business Units > Edit Business Unit > Payroll > Cost Mark-Up. Check with your success or implementation manager to verify your payroll settings; this may not apply to your payroll settings.
Set up the material mark-up table
Go to Pricebook > Materials.
Set mark-up rates for material items under Materials. Set mark-ups on purchase orders under Purchase Orders.
Enter the desired cost range for the mark-up. For example, if you enter a 25% mark-up for a cost range between $0 to $1000, the mark-up for an item that costs $200 would be $50 ($200 x 25% = $50).
Enter the mark-up rate.
To add another mark-up rate, click Add Markup.
If you need to remove a mark-up, click the - icon.
When you're done, click Save.
Individual versus aggregate material mark-ups
When your account is configured for the material mark-up table, you have the option to select individual or aggregate mark-ups.
Note: Once the mark-up table is configured for your account, you cannot change the individual/aggregate setting. Contact your success or implementation managerif you want to change your mark-up table setting.
What is an individual material mark-up?
If your account is configured for individual material mark-ups, material mark-up rates will be applied at the individual item level.
What is an aggregate material mark-up?
If your account is configured for aggregate material mark-ups, the sum of material costs determines the material mark-up rate.
Sample calculations - individual vs. aggregate mark-ups
Let’s assume the material mark-up table is as follows:
15% mark-up on material costs between $0 to $100
20% mark-up on material costs between $101 to $200
Let’s assume both of these material items are added to an invoice:
Material A: $50 cost.
Material B: $150 cost.
If your account is set up for individual mark-ups, mark-ups are calculated as follows:
Material A: $50 cost + 15% mark-up = $57.50
Material B: $150 cost + 20% mark-up = $180.00
Total Materials Charge: $57.50 + $180.00 = $237.50
If your account is set up for aggregate mark-ups, mark-ups are calculated as follows:
Total Materials Charge: $200 total material costs + 20% mark-up = $240.00
Want to learn more?
Visit ServiceTitan Academy to enroll in Setting Your Prices
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.