Assigning Markup Subtype: For Purchase or For Sale

You can add markup items to purchase and sales transactions. The sub-type of the Markup item depends on the Account chosen on the item record.

• Choosing an expense account makes the item record as Markup For Purchase.
• Choosing an income account makes the item record as Markup For Sale.

You can create a markup item for rush orders and set the account to an income account. Then, when a customer places an order and requests that it be rushed, you can use the markup item to charge a rush fee.

To create a markup item:

1. Go to Lists> Accounting> Items> New.
2. Click Markup.
3. In the Item Name/Number field, enter a name for this markup.
4. On the Accounting tab, choose an account for this item.
   The account you choose here determines the subtype of the markup item.
5. In the Rate field, enter an amount for this markup.
6. Check the Apply Before Sales Tax to apply this markup to transaction totals before sales tax is calculated.
7. Click Save.