How to Set Up Financial Management › How to Enable Cost Plus Codes › Create Cost Plus Rules and Add to Cost Plus Codes

Create Cost Plus Rules and Add to Cost Plus Codes

The cost plus rules 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.

To delete a cost plus rule after adding, do the following:

• 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.