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C
CCCBuilder
August 5, 2023
Question

Easy way to markup material inside invoice to make it go towards labor behind the scenes?

  • August 5, 2023
  • 1 reply
  • 0 views

QuickBooks Desktop 2020
I typically enter bills and use Items to categorize the materials for a remodel job, then mark the item as billable on the bill so that when I generate an invoice I just add the materials from all the bills using the 'Add Time/Costs' feature.  This creates a 1:1 ratio and no markup on materials.  Some materials take a lot of time to source and customer interaction so I'd like to markup the material itself on the invoice, but if I do that then the P/L doesn't really show that markup as labor, which is what it technically is.  

When I enter the bill I can't alter/change prices or add a labor charge or it will throw off the bills.

If I change the item price inside the invoice then that just throws off the books.

Is there an easy way when using Items in QB Desktop to correlate markup on material to a labor category? 

1 reply

DHeraV
DHeraV
August 5, 2023

Yes, there's an easy way to correlate markup material to a labor category in QuickBooks Desktop (QBDT), @CCCBuilder. I'm here to walk you through the process for a seamless experience.

Since you have already enabled the Markup feature in QuickBooks, you can now add a markup percentage on your items. Here's how:
 

  1. In your QBDT file, go to the Lists menu, then select Item List.
  2. Locate and select the item you want to add a markup.


     
  3. Click on Edit Markup.


     
  4. Select the Type of Markup you want on the dropdown.


     
  5. Make sure to add a Cost and Markup Amount.


     
  6. Once ready, click on OK to save.

 

Please note that the markup amount won't show when creating a bill in QuickBooks. It'll instead reflect on the invoice when creating one. Kindly refer to the images below for visual reference. Note: The images contain dummy names.

 


 



Moreover, if you consider adding a default markup percentage on all of your items in the future, here's how:
 

  1. In your QBDT file, click on the Edit menu, then select Time & Expenses.
  2. Go to the Company Preferences section.
  3. Add an amount in the Default Markup Percentage field.
  4. Select OK to save.

 

If you require additional aid with your inventories and transaction forms, please let me know by leaving a response below. I am ready to assist you in any way possible.

C
CCCBuilderAuthor
August 6, 2023

I do not currently have Markup enabled. I went through preferences but did not see the option, so currently when I edit an Item I do not see the "Edit Markup" option.

I assume I also need to point Markup towards my Labor income account whenever I enable it?  

 

Thank you

M
Maybelle_S
August 6, 2023

I'm here to ensure you can successfully add Markup to your items in QuickBooks, CCCBuilder. Let's work together to get your Markup set up and running smoothly.

 

In QuickBooks Desktop (QBDT), Markup doesn't need to be enabled to appear in the item window. It will only be visible if the item type is set as Inventory.

 

Here's how:

 

  1. Go to the Lists menu, and choose Item List.
  2. Choose an inventory item.
  3. Click Edit Markup.
  4. Select the Type of Markup you want on the dropdown.
  5. Add the Cost and Markup Amount.
  6. Hit OK.

 

If you have any questions or encounter any difficulties along the way, feel free to add a comment below. I'll be more than happy to assist you and guide you through the process. Have a great day!

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