Billable Expenses Markup - Not Calculating Sales Amount Properly

Markup should be calculated as a percentage, not as a fixed dollar amount, Sierra.

The total amount billed to the customer is based on the worker’s total labor cost plus your company’s 45% markup.

To determine the worker’s total labor cost, multiply the number of hours worked by the employee’s hourly wage. For example, if your employee is paid $19 per hour and works for 6 hours, then the total labor cost is $114. This amount represents the base cost for the worker’s time.

Example: $19.00 × 6 hours = $114.00 (the base labor cost).

Next, calculate the markup by applying forty-five per cent to the total labor cost. In this example, forty-five per cent of one hundred fourteen dollars equals fifty-one dollars and thirty cents.

Example: $114.00 × 45% = $51.30 (the markup amount).

Finally, add the labor cost and the markup together to find the total amount you will bill the customer. So, one hundred fourteen dollars plus fifty-one dollars and thirty cents equals one hundred sixty-five dollars and thirty cents.

Example: $114.00 + $51.30 = $165.30

If you want to improve your experience using QuickBooks, our QuickBooks Live Expert Assisted team is available to help. We offer support for a wide range of business tasks, ensuring you receive the guidance you need.

Please feel free to contact us if you have any further questions.

You must've misunderstood my comment. Our markup is not 45%. The cost amount we paid the employee was $19 per hour. He worked six hours. We want to charge the company $45 an hour. That is a 236.89% markup on labor. I figured it out, qbo is taking the cost of the of $114 x markup % which is 236.89% = $270 + original cost of $114. This feature won't work for what we need it for.