This appendix contains these topics:
The markup is an amount that you add to costs for overhead and profit. The system calculates markup amounts when you accumulate costs or revise workfile transactions based on the markup rules you define when you set up the Contract Billing system.
You define markup rules by specifying major and minor key values. The system uses these values in combination to identify the specific markup rules that apply to individual source transactions. To identify the correct markup rules, the system:
Accesses the markup rules
Searches and selects specific source transactions that match the values you specified for the major key
Continues the search, narrowing the selection of source transactions based on the value you specified for the minor key
The system uses the most specific rule it can locate to calculate the markup for a transaction.
The system matches the major key information you define for a markup table to the information in billable workfile transactions.
The following table lists the searches that the system can use for a major key.
| Search Level | Key Type | Searches for: | Validates against: |
|---|---|---|---|
| First | 1 | Work Orders | Work Order Master (F4801) |
| Second | 2 | Work Order Classes | User Defined Code (UDC 00/W7) |
| Third | 3 | Contract Numbers | Contract Billing Master (F5201) |
| Fourth | 4 | Parent Contract Numbers | Parent Contract Master (F5201) |
| Fifth | 5 | Customer Numbers | Address Book Master (F0101) |
| Sixth | 6 | Job/Business Units | Job (Business Unit) Master (F0006) |
| Seventh | 7 | Job Classes | User Defined Code (UDC 00/11) |
| Eighth | 8 | Company | Company Constants (F0010) |
| Ninth | 9 | System Default | No validation |
The system uses Key Type 9 if a match is not found at any of the previous levels. The system applies the remaining eligible transactions to tables with this key type. If the system does not find a match, it uses the default markup percentage that you specify in the system constants.
The system identifies payroll transactions using the T2 and T4 document type coding. Having identified a T2 or T4 document, the system conducts two searches for related minor key values.
At the first level of the first search, the system looks for a match with transactions that include the job type, job step, pay type, and employee number.
| Search Level | Searches for: | ||||
|---|---|---|---|---|---|
| JBCD (Job Type) | JBST (Job Step) | PDBA (Pay Type) | AN8 (Employee) | ||
| First | X | X | X | AND | X |
| Second | X | X | AND | X | |
| Third | X | X | AND | X | |
| Fourth | X | AND | X | ||
| Fifth | X | X | AND | X | |
| Sixth | X | AND | X | ||
| Seventh | X | AND | X | ||
| Eighth | X |
In the second search for payroll transactions, the system uses job type, job step, and pay type, with either the home business unit or a cost pool. Employee number, home business unit, and cost pool are mutually exclusive and are not used in the second level search.
| Search Level | Searches for: | ||||
|---|---|---|---|---|---|
| JBCD (Job Type) | JBST (Job Step) | PDBA (Pay Type) | HMCU (Home BU) | RP12 (Cost Pool) | |
| First | X | X | X | X | |
| Second | X | X | X | X | |
| Third | X | X | X | ||
| Fourth | X | X | X | ||
| Fifth | X | X | X | ||
| Sixth | X | X | |||
| Seventh | X | X | X | ||
| Eighth | X | X | X | ||
| Ninth | X | X | |||
| Tenth | X | X | |||
| Eleventh | X | X | |||
| Twelfth | X | ||||
| Thirteenth | X | X | X | ||
| Fourteenth | X | X | X | ||
| Fifteenth | X | X | |||
| Sixteenth | X | X | |||
| Seventeenth | X | X | |||
| Eighteenth | X | ||||
| Nineteenth | X | X | |||
| Twentieth | X | X | |||
| Twenty-first | X | ||||
| Twenty-second | X | ||||
| Twenty-third | X | ||||
| Twenty-fourth |
The system identifies non-payroll equipment transactions using the TE or T5 document type code. It applies the following search criteria to transactions with the TE or T5 document type.
| Search Level | Searches for: | ||||
|---|---|---|---|---|---|
| ACL0 (Rate Grp) | NUMB/EQCG (Equipment) | ERC (Rate Code) | HMCU (Home BU) | RP12 (Cost Pool) | |
| First | X | ||||
| Second | X | X | X | ||
| Third | X | X | |||
| Fourth | X | X | |||
| Fifth | X | X | |||
| Sixth | X | ||||
| Seventh | X | ||||
| Eighth | X | ||||
| Ninth | X | ||||
| Tenth |
For the remaining eligible transactions (those that are not T2, T4, T5, or TE documents), the system conducts the following search for minor key values.
| Search Level | Searches for: | |||
|---|---|---|---|---|
| AN8 (Employee) | HMCU (Home BU) | RP12 (Cost Pool) | JBST (Job Step) | |
| First | X | X | X | |
| Second | X | X | X | |
| Third | X | X | ||
| Fourth | X | X | ||
| Fifth | X | |||
| Sixth | X | |||
| Seventh | X | |||
| Eighth | X | |||
| Ninth |
When the system finds a match between the minor key values and the transactions being billed, it searches for a match of the object and subsidiary account information between the markup table rule and the billable transaction.
| Search Level | Searches for: | |
|---|---|---|
| OBJ (Object) | SUB (Subsidiary) | |
| First | X | X |
| Second | X | |
| Third | X | |
| Fourth |
T2 Payroll Transactions with Equipment Information
If a markup table rule contains information for a rate group (ACL0), equipment number (EQCG), or rate code (ERC), the T2 payroll transaction with equipment information must match the equipment information in the markup table rule. If the information does not match, the system continues to search for the correct rule. The following three examples illustrate this search:
The markup table rule specifies an equipment number of 180 and the T2 payroll transaction contains an equipment number of 100. The system continues searching for another rule because the equipment numbers do not match.
The markup table specifies an equipment number of 180 and the T2 payroll transaction does not contain an equipment number. The system continues searching for another rule because the equipment numbers do not match.
The markup rule does not specify an equipment number and the T2 payroll transaction contains an equipment number of 100. When the rule does not specify an equipment number, it applies to all T2 payroll transactions, whether they contain an equipment number or not. The system stops the search and uses the rule.