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Expense markups may be handled in a couple of ways in Unanet.   The mark up must be added prior to any expenses or vendor invoices being entered in your system.

If a TM contract stipulates that expenses must have fixed G&A applied on invoices, then you will likely want to set up a separate project for Expenses where that project is of Billing Type "CP".If instead you simply want to markup expenses for billing by x%percentage (billing by x%, and that % is not going to fluctuate based on your G&A rates or any other influence, it will be simpler to use the Expense Markup feature. ) applied on invoices, this can be simply done directly on the T&M project by using the Expense Markup feature and adding the applicable expense type(s) at the project level and set the fixed % mark up to be applied on invoices

If a TM contract stipulates that expenses must have a G&A percentage applied on invoices that fluctuates or is pulled from your G&A indirect rate set up in your system then you will likely want to set up a separate project for Expenses where that project is set to a Billing Type "CP".


The Pros and Cons of each option are below, along with the steps for setup. 

Pros and Considerations

Method for billable G&A markup on TM contractPro'sConsiderations
Expense Type Markup
  • Only one project is required
  • Works nicely if the Markup never changes year over year
  • There is no date range in the Expense Type markup feature, so when the Markup goes up, it goes up for all future expenses (except locked/extracted ones of course. Timing has to be impeccable as far as locking/extracting expenses applicable to one date range and setting up the new markup %.
  • The markup cannot be adjusted when final rates are received, which is a requirement for anyone who is applying G&A rather than markup.
Separate CP project and cost structure
  • Allows tight control of G&A % changes year over year. You can pick up G&A rate changes and escalation from the cost structure
  • You don't have to specify markup to each TM project every time you need a new Expense Type in the system
  • Must create a separate project of CP Billing Type and ensure all applicable expenses get charged to that CP project. (Labor will remain on the TM Billing Type project.)
  • Separate project may be confusing to look at because the Billing Type is CP for a TM project
  • Billing must involve Lead/Contributor project setup. This works fine but is an additional step.

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Option 1: Expense Type Markup

In You can either:

  • add the mark up at the Expense Type level if this mark up would be added for the specific expense type across all T&M projects in Admin > Setup > Expense Types, apply the appropriate markup.  If the % Markup changes the next year, you may want to consider temporarily turning on the property "Limit Access To Administrators Only (Restricted Access Mode)" in order to ensure no other expenses are processed while you finalize the one year's expenses on the old rate and set up the new rate.

or

  • add the mark up directly at the project level if the mark up % is project specific and will apply only certain T&M projects in Project > Expense Type, click on + Expense Type to first add the applicable expense type(s) and save then pencil into recently added expense type(s) to edit and enter the applicable % in the Project Markup field.

If new Expense Types are added to the system, you must specify the Markup amount each time (in addition to mapping the Expense Types in the Cost Structure).

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Sequentially, the setup for a TM contract with variable G&A Markup or a G&A mark up tied to your current indirect G&A rate would be using a TM billing type project and a CP billing type project as follows:

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