Add Financial Markup to Funding Change Orders

Objective

To add financial markup to a Funding Change Order (FCO).

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. The Funding tool lets users with 'Admin' permission set the markup amounts on your line items automatically. Using the settings in the project's Funding tool, you can set two types of financial markup:

• 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 an FCO. 

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 FCOs 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 Funding tool.
  • To view financial markup on the change order's Schedule of Values (SOV), 'Standard' level permission on both the project's Change Orders and Funding tools. 
• Additional Information:
  • If you do NOT map the financial markup to a specific budget code, it appears in the budget as an unbudgeted line item.
• For companies using the  ERP Integrations tool: Show/Hide  
  • Some ERP integrations do not support the sync of horizontal markups, vertical markups, or both. See Things to Know About your ERP Integration for details.

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 the Financial Markup tab on the funding. See Enable Financial Markup on a Funding.
• Create at least one (1) funding. See Create Fundings.

Steps

1. Navigate to the project's Funding tool.
2. Locate the funding to work with. Then click its Number link.
3. Click the Financial Markup tab. 

    Note

   The 'Financial Markup' tab must be enabled in the funding's Advanced Settings tab. See Enable Financial Markup on a Funding.
4. Under Add Markups to Get Started, you have these options:
   
   • Add Horizontal Markup. Click this button to display the markup in the same row as the line items. 
   • Add 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 on funding change orders?
     • You can apply financial markup settings on a per-change order basis.
     This opens a page where 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? 
   • Applies To. Choose the cost types that the markup percentage will be applied to. By default, Procore lists all of your existing cost types, so you can click the X on each cost type object to remove it. See What are Procore's default cost types? and Add Company Cost Types. If you want to remove one or more cost types, click the 'x' next to the desired selections.
7.  For companies using the  ERP Integrations tool: 
   • ERP funding Item. Select the desired Schedule of Values (SOV) line item from the project’s funding. This ensures that the estimated value (the SOV value without vertical markup) and the revenue value (the SOV 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 funding change order.
   • Export Markup to Estimate. Select this checkbox to enable the ability to sync financial markup on a funding to the cost estimate in ERP. This checkbox is only available to customers with the Sage 300 CRE® integration,  Integration by Procore with Viewpoint® Spectrum®, or Integration by Ryvit with Viewpoint® Vista™ . 
8. Click Save.

See Also

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