In your fp. System, External Expenses can be marked up by a percentage value. Several of our users though, think more in terms of margins, rather than mark ups.
Please review this article to learn how you can get the margin values you want, through the use of the mark up fields.
How to convert?
The function point system allows you to enter a mark up percentage using 4 decimal places. Please convert a desired fixed margin using the formula above.
Example: You want to have a 20% profit on every expense that goes through the system.
Mark up % = 1 / (1-.20) -1
Mark up % = 25%
By charging a 25% markup you will ensure a 20% profit margin.
Quick Reference Chart: Mark Up for Fixed Margin
Please make use of this quick chart, to help you manage using the mark up fields in lieu margins.
Where do Mark Up fields live?
You can add or edit your mark up percentage values in the Admin area of the system under Rate and Staff Management > Service Rates and Markups.
External Expenses will be the last section in this list view. All you active, and inactive expenses will be listed, across any of your active rate cards.
Save any changes in the bottom of the page. Note that unless otherwise specified, changes will only apply to new work you create in your system.
We welcome your questions or concerns: firstname.lastname@example.org