Markup Calculations

The markup is an amount that you add to costs for overhead and profit. The system calculates markup amounts when you generate or revise workfile transactions based on the markup rules that you set up when you set up Contract and Service Billing.

You set up 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 for major key information that matches values that you specified on specific source transactions.

• Narrows the search, matching minor key information to values that you specified on source transactions.

• Calculates the markup amount for individual transactions based on the applicable markup calculation rules.

• Updates the workfile transaction with the applicable markup amount.

The system uses the most specific rule it can locate to calculate the markup for a transaction.