Determine parts markup percentages |
Note: Part markup rules also apply to parts designated as not from inventory on the Data -> Parts Activity -> Direct Issues screen.
When you record the receipt of a part, the sales tax is added to the cost of the part before the appropriate markups are applied.
When you charge commercial parts or labor to a work order, the appropriate markups are applied before the sales tax is added to the charges.
To determine the parts markup percentage to add to parts charges, the application performs the following steps, in order.
Step 1. Examines the No markup on this part field on the Markups tab of the Data -> Parts Items -> Location Information screen for the work order location.
If there is a check in the field, a markup percentage is not applied.
If this field is blank, the application proceeds to step 2.
Step 2. Examines the No markup on this part field on the Markups tab of the Data -> Parts Items -> Primary Information screen for the part.
If there is a check in the field, a markup percentage is not applied.
If the field is blank, the application uses the markup percentage specified in the first of the following fields and proceeds to step 4.
-- Markup percentage on the Markups tab of the Data -> Parts Items -> Location Information screen
-- Markup percentages on the Markups tab of the Data -> Parts Items -> Primary Information screen
If there are no values in either of these fields, the application proceeds to step 3.
Step 3. Examines the Specify markups by location/Parts field on the Rates and Markups tab of the Data -> Shop Activity -> Setup -> Options screen.
If this field has a check, the application uses the Markup percentages/Parts value on the Rates and Markups tab of the Data -> Setup -> Organization Structure -> Locations -> Primary Information screen for the ISSUING location and proceeds to step 4. (Whether the application uses the Internal or Outside markup is determined by the equipment unit ownership. See Parts markup charges determined by ownership.)
If this field is blank, the application uses the Markup percentages/Parts value on the Rates and Markups tab of the Data -> Shop Activity -> Setup -> Options screen and proceeds to step 4.
Step 4. Examines the Markup cap field on the Markups tab of the Data -> Parts Items -> Location Information screen.
If the Parts - Location Information record cap if less than the markup, then the markup cap is used.
If the Parts - Location Information record cap amount is 0, and there is a record cap set on the Parts - Primary Information screen, then the primary cap is applied.
If the Parts - Location Information record cap amount is greater than the markup, and there is a record cap set on the Parts - Primary Information screen, then it does not check the Parts - Primary Information record cap (proceed to step 5).
Step 5. Examines the Markup cap field on the Markups tab of the Data -> Parts Items -> Primary Information screen.
If the parts markup percentage determined in steps 3 and 4 is greater than the amount in this field, the markup is reduced to the value specified.
If the parts markup percentage determined in steps 3 and 4 is less than the amount in this field OR if the amount in this field and in the Markup cap field on the Markups tab of the Data -> Parts Items -> Location Information screen is zero (0), the application proceeds to step 6.
Step 6. Adds the parts markup percentage to the parts charge.
Step 7. The final cost of the part is calculated by adding the percentage on the Rates and Markups tab of the Data -> Setup -> Organization Structure -> Departments -> Primary Information screen to the parts charge determined in step 6.