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Marking up items on an estimate

QuickBooks enables you to add a markup to your basic costs as you write an estimate.

When you set up items on your Items list, you can specify both a cost and a sales price for the types of items you're likely to sell (service, inventory part, noninventory part, and other charge). When you use one of these items on an estimate, QuickBooks prefills the markup percentage based on the two prices. For example, if the cost of an item is $25.00 and the sales price is $30.00, QuickBooks enters the markup percentage as 20%.


QuickBooks automatically calculates a markup for each item and inserts the amount into this column. If you set up a sales price and a cost for the item, the markup is the difference between the two amounts, expressed as a percentage of the item's cost. If either the sales price or the cost is $0.00 on the Item list, QuickBooks leaves the Markup column blank.

You can edit the markup if necessary. The markup can be either a dollar amount or a percentage. If you enter a percentage, include a % sign.

Changes to the total affect the markup. If you change an item's total after you've entered a markup, QuickBooks recalculates the markup. For example, if the markup is $10.00 and you then increase the total by $5.00, the markup changes to $15.00 ($10.00 plus $5.00). If the markup is a percentage, QuickBooks recalculates the markup and reenters it as a new percentage.

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