Compound Markup

A compound markup results when you set up more than one markup calculation on a minor key.

For example, a workfile transaction with 10 units might use a minor key with these markup calculations:

• Rate override of 50 USD per unit.

• Percentage markup of 10 percent.

• Amount markup of 25 USD.

The system uses these steps to calculate the compounded markup:

1. 10 units × 50 USD = 500 USD

2. (500 USD × 10 percent) + 500 USD = 550 USD

3. 550 USD + 25 USD = 575 USD

Using the same compounded markup rule, the system calculates a workfile transaction with zero units but 200 USD cost this way:

1. No rate calculation because units equal zero.

2. 200 USD × 10 percent + 200 USD = 220 USD

3. 220 USD + 25 USD = 245 USD