Enable Cost Plus Codes

The cost plus mechanism is used to apply mark-ups. A cost plus code is a set of cost plus rules. Cost plus rules allow for the mark-up of actual or standard costs. Project managers can associate cost plus rules to their projects to allow mark-up to be calculated using the multiplier (factor), burden, and overhead methods. Cost plus rules are added to cost plus codes to make up cost plus. Cost plus is used in an existing cost/rate matrix.
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The cost plus mechanism is used to apply mark-ups. A cost plus code is a set of cost plus rules. Cost plus rules allow for the mark-up of actual or standard costs. Project managers can associate cost plus rules to their projects to allow mark-up to be calculated using the multiplier (factor), burden, and overhead methods. Cost plus rules are added to cost plus codes to make up cost plus. Cost plus is used in an existing cost/rate matrix.
Create Cost Plus Codes
Follow these steps:
  1. Open Administration, and from Finance, click Cost Plus Codes.
  2. Click New.
  3. Complete the requested information. The following field requires explanation:
    • Applies To
      Defines the cost type to which the cost plus code applies from the list.
      Values:
      • Actual. The actual amount paid for transactions.
      • Standard. The blended or burdened rate.
  4. Save the changes.
If a cost plus code has been used in a transaction, you cannot delete it.
Create Cost Plus Rules and Add to Cost Plus Codes
The cost plus rules that you add to the cost plus code specify the conditions and amounts that are applied for markups. Cost plus rules are added to cost plus codes to make up cost plus. Cost plus is used in an existing cost/rate matrix. Define at least one cost plus rule for each code and add it to the cost plus code. You can define unlimited cost plus codes or rules.
To delete a cost plus rule after adding, complete these steps:
  • To delete the last rule added, click Delete Last Rule.
  • To delete rules with a lower sequence number than the last rule you entered, delete all of the rules with higher sequence numbers first.
Follow these steps:
  1. Open Administration, and from Finance, click Cost Plus Codes.
  2. Click the cost plus code to add a cost plus rule.
  3. In the Rules in effect section, click New.
  4. Complete the following fields:
    • Units From
      Defines the beginning value for which this rule is invoked.
    • Multiplier
      Defines the type of markup to apply for the actual or standard cost.
      Default:
      Percent
    • Burden
      Defines the type of markup to apply to burden.
      Default:
      Percent
    • Overhead
      Defines the mark-up variable for overhead.
      Default:
      Percent
    • Sequence
      Displays the range of units to which the mark-up applies.
    • Applies To
      Displays what the mark-up applies to (for example, cost, rate, or actual).
    • To
      Defines the end of the range for invoking the rule.
    • Multiplier Amount
      Defines the percentage amount for the multiplier markup. When this cost plus rule is invoked, the multiplier amount is included in the calculation for the total transaction amount.
      Default:
      0
    • Burden Amount
      Defines the percentage amount for the burden markup. The burden equals cost (actual or standard) times the burden amount. When this cost plus rule is invoked, the burden amount is included in the calculation for the total transaction amount.
      Default:
      0
    • Overhead Amount
      Defines the percentage amount for the overhead markup. Overhead is the operational costs of a business and equals cost (actual or standard) times the overhead amount. When this cost plus rule is invoked, the overhead amount is included in the total transaction amount.
      Default:
      0
  5. Save the changes.