Cost Markup Library and Details
The Cost Markup Library enables administrators to establish lists of Cost Markup Details that contain additional costs that users can apply to Work OrderResources. Cost Markups can be used for overhead costs such as insurance or fees for using specific Resources. These lists of additional costs can then be applied to Work Order Resources, such as Employees, which can provide more accurate cost analysis for Work Order Tasks.
After creating a Cost Markup Library to designate a group or type of cost markup, you can add one or more Cost Markup Detail records to specify the terms of the cost markup.
Cost Markups can be factored using one of the following methods:
- Percentage - Applies a set percentage of the resource's cost to the total cost for using that resource. Calculated as: (Percentage/100) x Default Unit Cost on Resource Record x Units.
-
Fixed Rate - Applies a set amount to the total cost for using that resource.
- on Subtotal - Adds a set amount of money to the cost of using the resource every time that resource is used on a Work Order.
- on Unit - Adds a set amount of money to the cost of using the resource for every Unit of work recorded for that resource on the Work Order.
Additionally, users can identify a Not To Exceed value to set a limit on a Cost Markup applied to a Work Order Resource.
-
Example
An employee makes $10 an hour; however, the agency has to pay taxes and insurance on top of his hourly rate. To track these costs, an administrator creates two Cost Markup records:
- one to apply a 2 percent tax rate, and
- one to apply $3 dollars per a hour for health insurance.
The employee is on-call and the agency must pay a $10 charge to the employee to use the employee outside of regular hours. So, a third Cost Markup is applied to his Employee Resource record on the Work Order.
The employee works 5 hours on a Work Order Task.
- Base Pay: $10 x 5 hours = $50
- Taxes: $10 x 2% x 5 hours = $1
- Insurance: $3 x 5 hours = $15
- Surcharge: $10
- Total Cost = $76
- Not To Exceed = $70
So, while the employee is paid $60 for his work, the total cost to the agency is $76.
However, the Cost Markup's Not To Exceed value was set at $70, so the Cost Markup applied to this Employee Resource on the Work Order will be $70.
Common Tasks
To open the Cost Markup Library module, select Work > Administration > Cost Markup Library.