Defining Estimated and Actual Markups on Sales Contract—Exercises

Required Data

Sales Contract

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

For creating a sales contract see the general exercise for Creating Sales Contract

Adding Line and Items to a Sales Contract

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

General exercise for Adding Lines and Items to a Contract

Creating Project Cost Elements

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

General exercise for Setting up Project Cost/Revenue Element

Main Exercise

Purpose: The purpose of these exercises is to guide you through the steps of entering markup values to a sales contract. You can enter either an estimated markup or an actual markup.

Windows:
Sales Contract

Entering an Estimated Markup

  1. Open the Sales Contract window and and query for your contract, then click the Markups tab.
  2. Click the Estimating Markups tab and click New to enter a new record.
  3. Enter XXMAT that was pre-defined by you in basic data, in the Item Type field or select it from the List of Values.
  4. Enter 5 as the markup value in the Markup field.
  5. Click the Items tab and enter an item line based on cost value.
  6. Enter XXMAT in the Item Type field and save the record.
  7. Observe the Markup value you defined being updated in the Markup field and the fields with the sales values related to the item being updated in relation to the markup value you defined.

Entering an Actual Markup

  1. Open the Sales Contract window and and query for your contract, then click the Markups tab.
  2. Click the Actual Markups tab and click New to enter a new record.
  3. Enter a cost element in the Project Cost Element field or select from the List of Values.
  4. Enter 5 as the mark up value in the Markup field.
  5. Save the record.
  6. Actual markups are used when valuating an Application For Payment using the project cost data. Refer the Defining Actual Cost Details on an Application for Payment lesson in the Retrieving Cost/Progress Details from Project exercise for more information.

Note: You can also enter a markup value in the Markup field in the Sales Contract/Items tab.