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Level 1

Sale price not calculating what it has been setup

I setup Default markup percentage as 15% in QB preferences(Edit —> Preferences —> Time&Expenses —>Company Preferences  —> Invoicing options Default Markup Percentage 15%). When I add new item in QB when I enter cost price as $20 and tab it automatically setting 20.98(13%) instead 23.53 which is 15%. Why it is calculating wrongly ?

10 Comments
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QuickBooks Team

Sale price not calculating what it has been setup

Hi there, @SriniHN.

 

It's nice to have you in the Community today. I'm here to help and share some details about setting up default mark up percentage in QuickBooks Desktop.

 

We haven't received any similar cases reported about us. For now, let's try to delete and recreate the transaction. If the issue persists, I'd suggest running the verify and rebuild process. Verifying data identifies the most commonly known data issues within a company file while rebuilding data resolves data integrity issues.

 

Here's how:

  1. Click on File at the top.
  2. Select on Utilities.
  3. Select on Verify Data.
  4. If you see QuickBooks detected no problem with your data, select OK. You may continue using your company file.
  5. If Verify finds an issue with your data, you will be prompted to Rebuild Now.

For more details about this process, please check on this article: Resolve data damage on your company file. 

You can also try repairing your QuickBooks to fix program-related issues.

 

However, if the problem continues, I'd suggest reaching out to our Customer Care Team. They have the proper tools to check on your account and verify on what's causing the issue. 

 

To reach them:

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose QuickBooks Desktop.
  3. Click the issue or topic.
  4. Click the Green Phone button to see the support number.

This should keep you going today. Please let me know if you have any other questions about this concern. I'm always here to help. Have a good one!

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Level 1

Sale price not calculating what it has been setup

I tried going through your steps verifying data, still I am having same issue. I added new item as the cost $4 and sale price coming as $4.60. Even thought I set for 15% as Default markup percentage(Edit - Preferences - Time & Expenses - Company preference - Default Markup percentage), it is calculating 13% only. 

Highlighted
QuickBooks Team

Sale price not calculating what it has been setup

Hello there, @SriniHN.

 

Allow me to join the thread and help share information about markups in QuickBooks Desktop (QBDT).

 

It's possible that the markup amount or % entered under Choose Billable Time and Costs was 13% instead of 15%. Once you've set up the default markup under the Preferences, make sure that the markup amount or % was the same as the default markup.

 

If the same thing happens, I recommend getting in touch with our Support Team to check this further for you. For the support's contact information, you may check the steps given by our colleague BettyJaneB above.

 

Feel free to drop a post/comment if you have any other concerns, we're always here to help. Have a great day ahead!

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Level 15

Sale price not calculating what it has been setup

@Angelyn_T

@BettyJaneB

 

Please Learn from the input here.

 

@SriniHN

 

What you see is Not the function for Items. That function is for entries made on the Expenses tab of Checks, Credit Card Charges, and Bills. Yet, for Customers and job tracking, inventory, service items, noninventory and other Charge type items are used and they are used on the Items tab. The Job Reporting and the Profit reporting, and Quantity, all require you to be using Items.

 

The difference is, you are supposed to already Set your Price = the Rate you want to charge.

 

If you have a set cost or want to notate a likely cost, that is Cost side of the two sided item. Otherwise, leave Cost at $0 if it "varies" so that Actual Cost in going to be part of the data entry. The Rate or Price side is your Income; the Cost side is your Expense. That's why it is called Two Sided, and that's why there is not also a Markup on it. The assumption is that you Priced it, already. There are other Price Modification functions, such as Price levels, and Enterprise has Price Rules.

 

For understanding the differences between the Expenses tab and Items tab, please see my attachment.

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Level 15

Sale price not calculating what it has been setup

Oh: you can see it in the attachment provided by @Angelyn_T

 

It clearly is showing that this would be the Option for the Billable Entries you made as Expenses. Notice there are 4 tabs in the Add Time & Costs popup in that image:

Time = from Timesheets

Expenses = from Expenses tab of purchases

Mileage = from the Mileage function

Items = from the Items tab of purchases

 

If you look at that screen, it helps you understand it by definition.

Highlighted
Level 1

Sale price not calculating what it has been setup

I tried deleting and adding an item, still sale price calculating as 13% instead 15%.

Highlighted
Anonymous
Not applicable

Sale price not calculating what it has been setup

Hi there, @SriniHN,

 

I appreciate your time getting back to us. I can add a bit more about the Markup percentage of your inventory items.

 

You can directly edit the inventory item if you're setting up a different markup rate that's different from the default percentage on your Preferences. Follow the steps below:

  1. Go to Lists.
  2. Select Item List.
  3. Double-click the inventory item and click the Edit Markup button.
  4. On the Markup Percent field, enter the preferred rate.
  5. Click OK.

However, if you're still seeing the incorrect rate applied to your sales price, I'd recommend getting in touch with our Technical Support Team. There they can help you identify what's causing this unexpected behavior with your items. Here's how to contact us:

  1. Go to this link: https://help.quickbooks.intuit.com/en_US/contact#
  2. Choose Quickbooks Desktop.
  3. Select the product type you're using.
  4. Click on the Search for something else button.
  5. On the box, type Markup.
  6. Click Search.
  7. Scroll down and click the Get Phone Number button.

That should point you to the right direction, @SriniHN. Please let me know how this goes. I'm here to help you anytime. Have a good one!

Highlighted
Level 1

Sale price not calculating what it has been setup

Below is the edit item list what I can see in my QB. I don't see Edit Markup option.

Screen Shot 2019-01-26 at 2.45.48 PM.png  

Highlighted
Anonymous
Not applicable

Sale price not calculating what it has been setup

Hello, SriniHN.

 

Adding markups directly on an item is only available in the Enterprise version of QuickBooks.  As a workaround you can markup items on an invoice by expense type through the steps below:

  1. Go to Customers at the top and click Create Invoice.
  2. Enter Customer: Job and click Add Time/Cost at the top.
  3. On the Choose Billable Time and Costs window, go to the Expense tab and choose the item expense that you want to mark up.
  4. In the Markup Amount or % field, choose how much you want to mark up the item.
  5. Indicate the revenue account you want to use to track the income in the Markup Account field.
  6. Click Save.

Please get back to us if you have other concerns. 

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Level 15

Sale price not calculating what it has been setup

@SriniHN

 

Please note that your example of Inventory Item is not set up properly. The Right Side Income account is not a Purchases account; that is Sales Revenue.

 

Inventory asset = bottom left = this is where the Purchase data will flow

COGS on the left = this is where the Cost Basis from inventory asset flows to show it is now Sold, from the sales event.

And now you have Income minus COGS = profit from that sale transaction.

 

@Anonymous

 

Please Learn from the input here. You pointed out a function that does Not Apply here. You are explaining how to set up for a Markup for entries made on the Expenses tab of checks and bills and credit card charges. This is Never Used for an inventory product-related activity.

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