Markup Option

This field is used to define the type of markup used when creating invoices. The sequence type determines what type of markup is applicable for the line.

Note: Sequences with an “Amount” type cannot be used with any markup option other than N (No Markup), as they are typically billed as a flat amount.

The following table discusses each markup type and which types of sequences they can be used with.

Markup Option

Description

Used With Seq Type

N-No Markup

No markups are used.

ALL

S-Rate

Uses the rate entered in the Markup/Discount Rate field.

Source, Detail Addon, Total Addon

R-Retainage

Creates a retainage line for the sequence using the rate entered in the Markup/Discount Rate field.

Detail Addon, Total Addon

D-Discounts

Creates a discount line for the sequence using the rate entered in the Markup/Discount Rate field.

Detail Addon, Total Addon

T-Taxes

Adds taxes to the sequence line based on the tax code specified for the contract item.

Note: If you post intercompany invoices (i.e. the AR company in JC Company Parameters differs from the JC/JB company), and tax is applied to an invoice (billing), the tax liability remains with the AR company. For example, if JB Co #1 posts an invoice of $1050 (includes $50 tax) ARCo #2 will receive a debit of $1050 to its Receivables account, a credit of $50 to its Sales Tax Payable account, and a credit of $1000 to its Intercompany Payables account. JB/JC Co #1 receives a debit of $1000 to its Intercompany Receivables account and a credit of $1000 to its Contract Revenue account.

Source, Detail Addon, Total A`ddon

U-Rate per Unit

Adds a markup to the sequence line based on the number of posted units times the rate entered in the Markup/Discount Rate field.

Source, Detail Addon

H-Rate per Hour

Adds a markup to the sequence line based on the total hours for the detail add-on's source line (i.e. the sum of hours for all detail records for the source line) times rate entered in the Markup/Discount Rate field.

Detail Addon

X-Retainage Tax

Adds retainage tax to the sequence line based on the tax code specified for the contract item.

Detail Addon, Total Addon

The markup rate is used in conjunction with the markup option to determine the actual markup or discount amount for the sequence line. For “source” type sequences, the markup/discount rate will be used to calculate the amount for internal markups. Markups are applied to the detail lines for each source. For “add-on” type sequences, this rate is used to calculate the add-on amount. For Detail Add-ons, the rate is applied to each source. For Total Add-ons, the rate will be applied to the total of all sources.

Note: For Total Addon sequence types where the Markup Opt is “S-Rate,” and a markup rate is not specified a contract item is, the markup rate defined for the contract item (in JC Contract Items) will be used when calculating the billing amount. If a markup rate has not been specified for the contract item, the individual rates for each item on the billing will be used.

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