Rates and Markups (Departments) |
The Rates and Markups tab enables you to display and define the department labor rate and markup percentages for labor, parts, commercial labor, commercial parts, and rental billing.
The department used for markup is assigned by hierarchy. The markup logic uses the following hierarchy to assign a department for markup. If a department is not listed, the hierarchy checks the next level and so on for a department.
The posting's department
The equipment's associated department
The operator's associated department
The account's associated department
The field in the top section of this tab defines the data that displays.
Department ID
Identifier of the department currently selected in the grid or that you are currently defining. If the ID already exists, the department name displays to the right of the ID. This field has a list box.
Data in the fields in the bottom section of this tab define the labor, parts, rental billing, and fuel markup information for the department. Unless otherwise indicated, these fields are required.
Department labor rate
Rate charged on work orders for all labor performed at any internal shop on equipment units that are assigned to this department. You can use it to set up special labor rates for work performed on equipment units on behalf of other departments.
This rate is used unless the Basic Info tab of the Data -> Equipment Units -> Setup -> Equipment Class -> Class/Task Information screen specifies a flat or hourly rate for the task on the unit’s equipment class for standards. To learn the process used to determine labor rates, go to Determining labor rates.
Markup percentages
Percentage automatically added to the price of each individual labor charge or part charge on the department's work orders and to the price of each fuel ticket charged to equipment from this department. The format is xxx.xx. For example, 13.41 specifies 13.41%.
Markup percentages can help recover a department's indirect costs associated with the direct costs of providing labor and parts to equipment units. A specific set of rules is used to add these percentages. See Rules for Markup Percentages
Labor
Percentage of the price of labor charges (including sales tax, if any) that is added to work orders for the cost of labor performed in this department on equipment units assigned to the department. This field is optional. Labor charges enable departments to charge different labor rates on equipment units assigned to the department.
Parts
Percentage of the price of parts charges (including sales tax, if any) that is added to work orders for the cost of parts installed in this department. This value is added to part charges before the parts markup percentage is added. This field is optional. Parts charges enable departments to charge different rates for parts installed on equipment units assigned to the department. For more information, refer to Determining parts markup percentages.
Commercial labor
Percentage of the price of labor charges added to work orders for the cost of labor performed in this department on equipment units assigned to other departments. This value is added to a labor charge after the labor markup percentages has been added and sales tax (if any) is added to the final total. This field is optional. Commercial labor charges enable departments to charge different labor rates for vendor work performed on equipment.
Commercial parts
Percentage of the price of parts charges added to work orders for the cost of parts installed in this department on equipment units assigned to other departments. This value is added to part charges after the parts markup percentages has been added and the sales tax (if any) is added to the final total. This field is optional. Commercial parts charges enable departments to charge different parts rates for vendor work performed on equipment.
Work order cost threshold
Threshold dollar value for combined total labor and parts cost.
When a user closes a work order on the Work Order Center, Work Order - Short Form, Work Order Closing, or Work Order Completion screens, this field is checked (on this tab and the Rate and Markups tab on the Locations screen) for a threshold greater than 0. If the threshold for either department or locations is greater than 0, the sum of the total costs of all labor and all parts issues and all commercial charges posted to the work order are compared against each threshold. If this sum is greater than either threshold (or greater than both thresholds), a warning message appears. You may cancel the work order closing or continue closing it.
Rental billing markup pct
Percentage of markup applied to all rental charges on all equipment used by or assigned to this department, as computed from the Data -> Equipment Activity -> Usage -> Usage Tickets screen.
When equipment usage charges are computed, the markup percentage in this field is added to the applicable rental rates.
Note: To charge different rental rates to different departments, use the Rental Rates tab on the Data -> Equipment Units -> Setup -> Equipment Class -> Primary Information screen. If the optional Motor Pool module is installed, also see the Rental Rates tab on the Data -> Equipment Activity -> Motor Pool -> Setup -> Pool Vehicle Types screen.
This markup percentage is applied when calculating the following charges:
Usage Tickets: Meter usage (both meters)
Days and hours
Other
Base (computed during processing of end-of-period equipment usage)
Reservations: Meter usage
Days and hours
Other
Late
No show
Add fuel type markup on internal fuel tickets
If this field has a check, the markup amount for the appropriate fuel type is applied to the internal fuel tickets charged to this department’s equipment units. Enables fuel markup to be an absolute value per unit of fuel rather than a percentage of the value.
The markup amount per unit of fuel is specified on the Data -> Fuel/Fluid Tanks -> Setup -> Fuel Types screen.
Add fuel type markup on external fuel tickets
If this field has a check, the markup amount for the appropriate fuel type is applied to the external fuel tickets charged to this department’s equipment units. Enables fuel markup to be an absolute value per unit of fuel rather than a percentage of the value.
The markup amount per unit of fuel is specified on the Data -> Fuel/Fluid Tanks -> Setup -> Fuel Types screen.