Add Financial Markup to Prime Contract Change Orders (PCCOs)

Objective

To add financial markup to Prime Contract Change Orders (PCCOs).

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 Prime Contracts tool lets users with 'Admin' permission set the markup amounts on line items automatically. Using the settings in the project's. Prime Contracts 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 a PCCO. 

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 PCCOs is reflected accurately on your project's budget.

Things to Consider

• Required User Permission:
  • To add financial markup, 'Admin' on the project's Prime Contracts tool.
  • To view financial markup on the change order's Schedule of Values (SOV), 'Standard' permission on the Change Orders and Prime Contracts tool. 
• Prerequisites:
  • Add the Budget Tool to the Project Tools menu. See Add and Remove Project Tools.
  • Enable the Sub Job feature. See Enable Sub Jobs or Enable Sub Jobs for Sage 300 CRE®.
  • Add sub jobs  to the project.  See Add a Sub Job to a Procore Project.
  • Use the Advanced Settings tab on a prime contract to enable the Financial Markup tab. See Edit the Advanced Settings Tab for a Prime Contract.
  • Create at least one (1) prime contract. See Create Prime Contracts.
• Additional Information:
  • If you do NOT select a cost code or cost type for the financial markup, it will appear as:
    • Cost Code=None
    • Cost Type=None
    • Division=None
• For companies using the  ERP Integrations tool: Show/Hide  
  • Integration by Procore: Viewpoint® Spectrum®: Markup is NOT supported.
  • Integration by Ryvit: Viewpoint® Vista™. Markup is NOT supported. 
  • QuickBooks®. Markup is NOT supported. 
  • Sage 100 Contractor®. Markup is NOT supported. 
  • Sage 300 CRE®. Only vertical markup is supported when the following is true:
    • Complete the steps in Request to Enable the ERP Integrations Tool. 
    • Configure the ERP Integrations tool. See Sage 300 CRE®: Setup Guide.  

Steps

1. Navigate to the project's Prime Contracts tool.
2. Locate the prime contract to work with. 
3. Click Edit.
4. Click Financial Markup. 

    Note

   This tab is only available if it has been enabled in the prime contract's Advanced Settings tab. See Enable Financial Markup on a Prime Contract.
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. 
     
     

      Notes

     • 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 Markup List as follows:
   • Markup Name. Enter in a name for the financial markup. 
   • Markup Percentage. Enter in the percentage for the markup.
   • Compounds Markup Above. If this box is not selected, markup percentage is calculated on the change order subtotal. If the box is selected, markup percentage is calculated on the subtotal with the addition of any preceding markups.
     
     
7. 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.
   
   
   
8. Under Will Map To,  select the following from the drop-down list:
   
   

    Note

   If the combination of the sub job, cost code and cost type are non-budgeted, a pop-up will appear asking to confirm to add this line item to the budget. If OK is selected, this line item will be added directly to the budget with a "?" next to the line item once a change order is created with financial markup. See Add a Partial Budget Line Item.
   • Sub Job. Select the desired sub job from the list.  This field only appears if the sub job feature is enabled in Procore (see Enable Sub Jobs or Enable Sub Jobs for Sage 300 CRE®) and sub jobs have been added to the project.  See Add a Sub Job to a Procore Project.
   • Cost Code. Select the desired cost code from the list. 
   • Cost Type. Select the desired cost type from the list.
   • ERP Prime Contract Item. Select the desired Schedule of Values (SOV) line item from the project’s Prime Contract. This ensures that the estimate value (i.e., the SOV value without vertical markup) and the revenue value (i.e., 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 prime contract change order.
   • Export Markup to Estimate. Select this checkbox to enable the ability to sync financial markup on a prime contract to a Sage 300 CRE® estimate. This checkbox is only available to customers with the Procore + Sage 300 CRE® integration. 
9. If you do not select a sub job, cost code and cost type, the markup will appear on the Budget as follows:
   • Cost Code=None
   • Cost Type=None
   • Division=None
10. Click Save.

See Also

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