Add Financial Markup to Commitment Change Orders (CCOs)

Objective

To add financial markup to the Commitment Change Orders (CCOs) associated with a purchase order or subcontract. 

Background

Using the financial markup options in the project's Commitments tool, teams can choose between applying a markup percentage (%) on all line items or individual line items in a contract:

• Horizontal Markup. Applies a percentage amount of financial markup to individual line items associated with a purchase order or subcontract.
• Vertical Markup. Applies a percentage amount of financial markup on all of the line items associated with a purchase order or subcontract. 

You can also associate your financial markup settings to cost types. This ensures that the financial markup on your project's PCCOs are accurately reflected on your project's budget.

Things to Consider

• Required User Permissions:
  • 'Admin' level permissions on the project's Commitments tool.
• Additional Information:
  • Financial markup is distributed proportionally on each line item in a change order's Schedule of Values (SOV).
  • Financial markup is applied to the cost codes and categories on those SOV lines in the budget.
  • Horizontal markup is included in the SOV's subtotal and is included in the vertical calculation when the markups are used in conjunction. 
• Limitations:
  • When you apply financial markup to a CCO, you cannot add those CCOs to your subcontractor invoices.

Prerequisites

• Enable Financial Markup on a Commitment

Steps

1. Navigate to your project's Commitments tool.
2. Click the Contracts tab. 
3. Locate the purchase order or subcontract to work withacct. Then click its Number link to open it. 
4. Click the Financial Markup tab. 

    Note

   • If the 'Financial Markup' tab is NOT visible, check the More menu to see if it is listed.
   • If 'Financial Markup' is not available in the More menu, the feature is likely disabled on your project. To learn more, see Enable Financial Markup on a Commitment.    

5. 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. 

      Note

     • To learn about the differences between markup types, see What is the difference between horizontal and vertical financial markup on prime contract change orders?
     • You can apply financial markup settings on a per-change order basis.
     This opens a page when you can then create your markup.  
6. Enter information in the Add Horizontal Markup or Add Vertical Markup window as follows:
   
   • Markup Name. Enter a name for the financial markup. 
   • Markup Percentage. Enter the percentage for the markup.
   • Compounds Markup Above. To calculate the markup amount on the change order subtotal using the defined 'Markup Percentage', move the toggle to the right so it's in the ON position. To turn this feature off, move the toggle to the left. 
7. Under Maps To,  select the following from the drop-down list:

    Note

   • If the selected 'Budget Code' does NOT have a corresponding line item on the project's Budget, click OK to add a partial budget line item to the budget. A partial budget line item appears with a "?" next to the line item after a change order is created with financial markup. See Add a Partial Budget Line Item.
   • Budget Code
     Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code?
8. Under Applies to Cost Types, all of the available cost types are listed here by default. See What are Procore's default cost types? and Set Default Cost Types. If you want to remove one or more cost types, click the 'x' next to the desired selections.

    Note

   If you do NOT select a budget code and cost type for the financial markup, it will appear as None.
9. Click Save.

See Also

• Create a Commitment Change Order (CCO)
• Create a Commitment Change Order (CCO) with DocuSign®