Who uses this feature
Administrators
Feature configuration
Account configuration is required to use this feature. Please contact your success or implementation manager for details.
Things to know
When you configure your account for material mark-ups, you have the option of individual or aggregate mark-ups.
If your account is configured for individual material mark-ups, material mark-up rates are applied at the individual item level.
If your account is configured for aggregate material mark-ups, the material cost determine the mark-up rate. For example, you can set a mark-up rate of 40% for all material items that cost under $100.
To change your material mark-up setting, contact your success or implementation manager.
Set up your material mark-ups
The material mark-up table is located in the Materials section of your pricebook (Pricebook > Materials).
Note: Newly entered mark-ups are not applied to pricebook items until you run the Price Setup Wizard.
Individual material mark-ups example
Example pricebook details:
Service 001 sold hours: 2 sold hours
Cost of Material A: $50
Cost of Material B: $150
Material Mark-Up Table:
15% mark-up on material costs between $0 to $100
20% mark-up on material costs between $101 to $200.
Example Price Setup Wizard details:
Billable rate (hr): $100
Surcharge: $0
This would be the Price of Service 001 with individual material mark-ups:
[2 sold hours x $100 billable rate per hour] + $0 surcharge + [$50 cost of Material A] + [15% individual item mark-up] + [$150 cost of Material B] + [20% individual item mark-up] = $437.50
The Price of Service 001 is $437.50.
Note: The same mark-ups apply to Member Price, Add On Price, and Member Add On Price.
Aggregate material mark-ups example
Example pricebook details:
Service 001 sold hours: 2 sold hours
Cost of Material A: $50
Cost of Material B: $150
Material Mark-Up Table:
15% mark-up on material costs between $0 to $100
20% mark-up on material costs between $101 to $200.
Example Price Setup Wizard details:
Billable rate (hr): $100
Surcharge: $0
This is the Price of Service 001 with an aggregate material mark-up:
[2 sold hours x $100 billable rate per hour] + $0 surcharge + [$50 cost of Material A + $150 cost of Material B] + [20% aggregate mark-up]=$440
The price of Service 001 is $440.00.
Note: The same mark-ups apply to Member Price, Add On Price, and Member Add On Price.