Add Financial Markup to Prime Contract Change Orders (PCCOs)

Objective

To add financial markup to a Prime Contract Change Order (PCCO).

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 your 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 Permissions:
  • To add financial markup, 'Admin' level permissions on the project's Prime Contracts tool.
  • To view financial markup on the change order's Schedule of Values (SOV), 'Standard' level permission on the project's Change Orders tool and Prime Contracts tool. 
• 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®: Vertical and Horizontal.
  • Integration by Ryvit: Viewpoint® Vista™. Vertical and Horizontal
  • 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.  

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.

Steps

1. Navigate to the project's Prime Contracts tool.
2. Locate the prime contract to work with. Then click its Number link.
3. 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.
4. 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.  
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:
   • Coming Soon Budget Code. Select the budget code that the markup percentage will be applied to. To learn more, see What is a budget code?
   • 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 Set Default 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 Prime Contract Item. Select the desired Schedule of Values (SOV) line item from the project’s Prime Contract. 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 prime contract change order.
   • Export Markup to Estimate. Select this checkbox to enable the ability to sync financial markup on a prime contract 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 Prime Contract
• Add a Partial Budget Line Item
• What are Procore's default cost types?
• Set Default Cost Types