What does Markup do?

Markup % is used only if you check the Billable checkbox. QuickBooks calculates the markup amount based on the amount in the Amount column and the Markup % column.

It adds the amount of the markup to the amount in the Amount column and bills that total to the customer you select. The marked up amount flows to the customer's next invoice.

Change the default markup rate

You can change the Markup amount on individual lines in a transaction. It should be a whole number (like 30), representing a percentage markup (like 30%).

To enter a markup of less than 1%, enter it as a decimal value with the percent sign. For example, to mark up .9%, enter .9%.

How markup works in the Itemize by Account table

• If markup is turned on, an account's default markup rate is the markup rate you specified on the Company Settings (or Account and Settings depending on what you see) page. The amount that flows to the customer's invoice is the amount in the Amount column plus the calculated markup amount.
• If markup is turned off, no Markup column appears. The price that flows to the customer's invoice is the amount in the Amount column.

How markup works in the Itemize by Product/Service table

• If markup is turned on, a product/service's default markup rate is calculated to be the difference between the purchase price and the sales price. The Sales Amount flows to the customer's invoice.
• If markup is turned off, no Markup or Sales Amount column appears, and QuickBooks assumes that you don't want to mark up the purchase price. The purchase price flows to the customer's invoice, even if you have a sales price defined for the product/service.