Rates and Markups

The Rates and Markups tab of the Locations screen enables you to display and define labor rates, markup percentages, and sales tax rates for the location.

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The field in the top section of this tab defines the data that displays.

Location ID

Identifier of the location currently selected in the grid or that you are defining. This field has a list box. The location name displays to the right of the ID.

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Data in the fields in the bottom section of this tab define rates and markups for the location. Unless otherwise indicated, these fields are required.

Location labor rate

The single rate charged on work orders for all labor at this location. To see the process used to determine labor rates, go to Determining labor rates.

Markup percentages

These markup percentages can help recover the location's indirect costs associated with the direct costs of providing labor, parts, and fuel to equipment units. A specific set of rules is followed to automatically add these percentages to the cost of each individual labor charge or part charge on this location's work orders and to the price of each fuel ticket charged to equipment from this location. See Rules for Markup Percentages .

To use the following percentages for the specified location ID, the Specify markups by location field on the Rates and Markups tab of the Data -> Shop Activity -> Setup -> O ptions screen must contain a check for the appropriate markup.
The format is xxx.xx. For example, 13.41 specifies 13.41%.

Labor

Percentage of the cost of direct labor charges (including sales tax, if any) added to work orders for the cost of labor performed at this location, dependent on the value in the Ownership field on the Ownership and Depreciation tab of the Data -> Equipment Units -> Fleet Equipment screen.

Internal: Applied to labor on equipment units with an ownership value of OWNED.
Outside: Applied to labor on equipment units with an ownership value of CUSTOMER.

Parts

Percentage of the cost of parts charges (including sales tax, if any) added to work orders for the cost of parts installed at this location. See Determining parts markup percentages.

Internal: Applied to parts on equipment units with an ownership value of OWNED.
Outside: Applied to parts on equipment units with an ownership value of CUSTOMER.

Commercial labor

Commercial labor is labor performed for companies outside the organization.

Percentage of the price of direct labor charges added to work orders for the cost of labor performed by vendors, dependent on the value in the Ownership field on the Ownership and Depreciation tab of the Data -> Equipment Units -> Fleet Equipment screen.

Internal: Applied to labor performed by vendors on equipment units with an ownership value of OWNED.
Outside: Applied to labor performed by vendors on equipment units with an ownership value of CUSTOMER.

Commercial parts

Commercial parts are parts sold to companies outside the organization.

Percentage of the cost of direct parts charges added to work orders for vendor parts’ charges, dependent on the value in the Ownership field on the Ownership and Depreciation tab of the Data -> Equipment Units -> Fleet Equipment screen.

Internal: Applied to vendor parts charges for equipment units with an ownership value of OWNED.
Outside: Applied to vendor parts charges for equipment units with an ownership value of CUSTOMER.

Fuel

Internal: Percentage of the cost of fuel charges issued from this location added to internal fuel tickets. This internal percentage is used if there is a check in the Specify internal markup by location field on the Data -> Equipment Activity -> Fueling -> Setup -> Options screen.

Do not reverse part markup on return

If this field has a check, part markups from work order charges are not reversed when a part is returned to stock. This option applies to organizations whose stock rooms charge restocking fees.

For example: A $100 part has a 15% markup, for a total issue price of $115. If the part is returned to stock and this field is checked, the part will be returned for $100 and the $15 parts charge will remain on the work order.

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 Departments 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. The user may either cancel the work order closing or may continue closing it.

Markup percentage on work order internal costs to cover small parts issues

Percentage markups on all work orders for this location. If you specify these markups, you can avoid charging work orders for small parts as they are used and enable the recovery of the cost of the parts through percentage markups on all work orders. You can also do this with fixed dollar amounts in the job Overhead cost field on the More Info tab on the Work Order Center screen. This overhead cost is separate from the labor and costs. It is not combined with labor and parts costs added to the equipment master cost data for the equipment unit.

The markup amounts for labor and parts on each work order are calculated when a part is posted. These amounts are added to any other amounts charged to job overhead cost on the Work Order Center screen. They are recorded in the OHD_SMALL_PTS_PARTS column of JOB_MAIN table at the time of processing.

Labor

Markup percentage on work orders’ internal labor costs to cover small parts issues at this location.

Parts

Markup percentage on work orders’ internal parts costs to cover small parts issues at this location.

Default work order overhead charges

Overhead charges added to work orders at this location if there is no amount in the Overhead cost field on the More Info tab of the Data -> Shop Activity -> Work Order Center screen.

On each repair order

Overhead charges added to each work order with a type of repair.

On each PM order

Overhead charges added to each work order with a type of PM (preventive maintenance).

On each rebuild order

Overhead charges added to each work order with a type of rebuild.

Sales tax rates for tax by individual location

If you are managing a fleet for its owner and are required to charge sales tax on labor or parts charged to work orders at this location, the following fields display the appropriate tax rates for the location. If you are not required to charge sales tax, these fields are blank.

The fields are required if there is a check in the Sales tax added by location for Labor or Parts fields on the Currency/Sales Tax Setup tab of the Data -> Setup -> Options screen.

Labor

Appropriate sales tax rate on labor for this location. This field supports two digits to the left of the decimal and four digits to the right.

Parts

Appropriate sales tax rate on parts for this location. This field supports two digits to the left of the decimal and four digits to the right.

Commercial labor

Appropriate sales tax rate on commercial labor for this location. This field supports two digits to the left of the decimal and four digits to the right.

Commercial parts

Appropriate sales tax rate on commercial parts for this location. This field supports two digits to the left of the decimal and four digits to the right.

Commercial misc

Appropriate sales tax rate on miscellaneous commercial costs for this location. This field supports four digits to the left of the decimal and four digits to the right.

Part receipts

Appropriate sales tax rate on part receipts for this location. This field supports two digits to the left of the decimal and four digits to the right.

Note: This option applies only to Enterprise Purchasing. The old Purchasing functionality follows the old sales tax rules.

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Rates and Markups

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See Also