Knowledgebase: WeEstimate
MarkUps, Burdens and Overhead
Posted by Arturo Bravo, Last modified by Mariuxi Tapia on 09/15/15 03:19 PM
The Markups configuration is an important and critical aspect of system configuration. Markups are global system settings. Typically Markups are set once, at the start of your system configuration and very likely not changed after initial system testing unless your company decides to make a specific change for instance, change the freight or warranty percentage being calculated system wide. Changes only take affect from the date made forward on new proposals within the system.

Select System Configuration from the Tools drop down.

Select a Region & Offices and click on Edit.

Select the Calculation %'s Tab

The Markups screen will appear. Settings within this screen are system wide. Remember to select “Save” when setting configurations within Markups. The following settings are set within Markups:

 

The first decision to be made is the type of markup to be made globally on Materials brought into any project or quote. The Materials Default Margin is the default setting for parts being brought on to a proposal from the parts loaded into the WeEstimate parts database.

Note: for those using one of our ERP/Accounting Integration Add-On Modules, parts will be brought into WeEstimate real time from that applications parts database. Part pricing will be brought in at specified cost. For more information, see the section of this Guide or the separate Guides for these Modules.
3a. Materials:
Default Margin % - set default margin to be applied to parts as they are selected for the Bill of Materials for each job.
Site Overrides Default – if this box is checked and a default margin is set at the site level (Contacts screen), the margin at the Site level will override the Default Margin % set here. See the screen shot above. Setting a Margin at the Site level for a customer means that every time a user brings that site into a proposal, that specified Margin will be the overall default margin for the job.

 

Sale Price/GPM: This setting specifies what will take precedence at the Bill of Materials (Estimate Screen) line item level when a User changes the unit cost of an item after the part has been brought on to the job. There are two selections at the drop down location: GPM Controls Sale Price or Sales Price Controls GPM.

The selection will calculate that change of pricing as follows:
the new sell price will be calculated from the GPM already on the job OR,
the current sale price will be maintained and the system will calculate the new GPM against the change made to the cost.

 

3b. Freight: Freight charges can be included at the item level on the Bill of Materials automatically for each job. Set the percentage to carry (per item) and from the drop down menu select either “Material Cost” or “Material Sell” for calculation of the percentage. By checking the “Do Not Charge to Customer” box, freight calculations for each project will not be charged as a cost of the job to the customer. Keeping this box unchecked will include freight charges as a cost to the job.

 

Warranty: Warranty charges can be included at the item level on the Bill of Materials automatically for each job. Set the percentage to carry (per item) and from the drop down menu select either “Material Cost” or “Material Sell” for calculation of the percentage. By checking the “Do Not Charge to Customer” box, freight calculations for each project will not be charged as a cost of the job to the customer. Keeping this box unchecked will include warranty charges as a cost to the job. A percentage of the calculated warranty can be set aside as profit by including the percentage to set aside in this field.

 

An example of where the calculations are seen on the Estimate screen, Bill of Materials is also included below. Clicking the + next to the parts line item, the 2nd row of the Bill of Materials opens revealing calculation of Freight and Warranty as set in this system configuration. Freight and Warranty tool bars are also available if Users want to see the totals per job on each estimate.

 

3c. Burden Settings:
Markups: Burden rates can be set in different ways within WeEstimate. At this location, Burden settings are system wide. A Burden can be set as a percentage of the total sales price as shown on the screen show above. Set the percentage in the field at the left. If charging the Burden to the job, check “Charge To Job”, if not charging to the job check “Do Not Charge to Customer”. To include a Burden on fixed price packages (Estimate screen, Packages Tab) check the “Include In Fixed Price Packs” box.

 

Material Burden: To set a Material Burden, where only material added to the job will be burdened, check the “Enabled” box. Then select either “Regions” or “Offices”. If setting the Burden at the Regions level, the Burden will apply to all Offices in each Region. If setting the Burden at the Offices level, the Burden will apply at the Offices level.

For both Regions and Offices, the Burden percentage needs to be set in System Configuration, Regions and Offices after selecting Regions or Office within Markups. If charging the Material Burden to the job, check the “Charge To Job” box. Remember: go to System Configuration to specify the Material Burden percentage.

Regions/Offices Burden Settings: After setting the Material Burden at either the Region or Office level in Markups, go to System Configuration, Regions & Offices. Select the Region and/or Office to set up the Material Burden percentage.

 

At the Material Burden % column insert the percentage of burden to apply.

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