QuickBooks Cost Plus Billing: Automatic Markup of Items
QuickBooks can do Cost Plus OR Time and Materials billing, however, Markups can only be calculated on Expenses. See this question submitted by a reader and learn about ways that you can mark-up Items.
In Premier, from everything I’ve read, asked experts, and surfed the web; a vendor purchased item that is to be applied to a job should be regarded as a non-inventory item, and applied to a COGS account. In entering the vendor’s bill the bill is recorded as an Item which then can be automatically linked to the customer on a time and cost invoice. Since the columns of the invoice can not be setup to preform math functions and only an Expense can be setup with a markup, is there away to apply an automatic markup on this vendor item on a invoice?
I’m confused as to why Intuit did not provide a method to do markup materials on what is very typical contractor transaction for a time and material invoice. Submitted by Ivan
Ivan, I agree with you, it’s confusing as to why Intuit didn’t add the ability to markup items for Time & Materials (Cost Plus) billing. I find it very annoying myself!
- Make sure that each Item has both a standard (or usual) cost and sales price and then create Price Levels and assign it to your customers or to specific jobs – this allows you to indicate that for a specific job you want to charge 25% (or whatever markup you choose) more than “usual”.
- Create a percentage based, single-sided Item linked to your Construction Income (or even a sub-account) that you will use to record Overhead & Profit. Pull all of your billable costs onto the Invoice, add a Subtotal, and then pull in the Overhead & Profit Item (it should then calculate the percentage based on the total costs)
- Estimates can be customized to include a Markup Column, so you “could” use the Estimate from to create the budget for your job, pulling in each item and adding a markup at the Estimate Level. You would then need to perform a 2-step process when you did your billing. Step 1 – would require that you generate a “normal invoice for all the time, expenses, mileage, and items – saving, printing, and then deleting it (this clears out the open “billable” items). Step 2 – involves going back to the Estimate and creating a Progress Invoice using the Invoice created in Step 1 for the dollar amounts/quantities billed.
I realize that this article only contains some general guidelines and suggestions, however, I hope you find it helpful – if you would like you can schedule some training time to discuss this further. If so, please take a moment of your time to leave a comment or to share it with others on your favorite social media network.
Leave a Reply
- The Great Debate – QuickBooks Desktop vs. QuickBooks Online
- Business Apps Shouldn’t Be THAT Hard to Use – Free Webinar
- QuickBooks 2015- The Good, Bad and Ugly, Part 1
- “Overstating” the Importance of Cost Reporting-Free Webinar
- QuickBooks 2015 Announced – Important System Requirements
- How do Amazon Merchants Reconcile in QuickBooks? Webinar
- Happy 14th Birthday Sunburst Software Solutions, Inc.
- Simple Controls You Can Put Into Place to Discourage Fraud
- Business Susceptibility to Theft and White Collar Crime – Are You a Target?
- Warning Signs & Red Flags of Fraud – Are Your Employees Stealing From You?
- Is Managing QuickBooks Purchase Orders Driving You Insane?
- Free Webinar-Identify and Safeguard Against Business Fraud
- Technology is Changing How We Submit Certified Payroll Reports
- Ask Me Anything – 10 Common Questions about Certified Payroll
- Are Your QuickBooks Payroll & Certified Payroll Processes Efficient?
- QuickBooks Tip: How to find “Notes” after an Upgrade
- QuickBooks Timely Payroll Alerts, Updates & Issues for 2013 Payroll Tax Returns
- QuickBooks Tip: How to Calculate Over/Under Billings
- Happy Holiday’s to you!
- Employee Reimbursements-Accountable vs Non-Accountable Plans
- Using Account Numbers in Your QuickBooks Chart of Accounts
- Straight from the IRS - Social Security Tax Reduced to 4.2%
- Calculating & Displaying Fringe Benefits on a Certified Payroll Report
- QuickBooks Payroll Tip - Tracking Employee Advances or Loans
- QuickBooks 2013 Upgrade Do's, Don'ts & Frequent Questions
- QuickBooks 2012 - Frequently Asked Questions About Upgrading
- QuickBooks Tip - Job Costing Starts With A Simple Item
- QuickBooks Tip-Handling Employee Reimbursements for Expenses
- QuickBooks Creating a More Meaningful Payroll Expenses Section
- QuickBooks Tip - Determing Cost of Goods Sold
- QuickBooks for Contractors Tip – Advanced Progress Invoicing
- Create a QuickBooks Job Cost Report With Hours & Payroll Costs
- QuickBooks Tip - Child Support Garnishments
- QuickBooks for Contractors Tip – Basics of Progress Invoicing
- QuickBooks Tip-Creating a Functional Payroll Liabilities Section
- QuickBooks Tip: Important Facts About Items Left as Billable
- New FHWA-1391 & 1392 Annual EEO Forms For Highway Contractors
- How To Turn On and Use Manual Payroll in QuickBooks
- QuickBooks 2012 Announced
- Frequently Asked Questions - California Prevailing Wage