Audience: Builder, trade, supplier, dealer
Read/Watch time: 10min watch, 10min read
Article content: FAQ/Videos
This article covers all things to do with PC/PS/Allowance items (terminology is specific to your region), how Buildxact handles the presentation on the quote, and markup on those items.
This is a complex topic, so we've presented it in both video format (for North America and Australia & New Zealand) and step-by-step instructions.
North America
Australia & New Zealand
Different terms/buttons for different regions
Depending on what part of the world you're in, your screen will look slightly different.
North American users will use the 'A' button. A standing for 'Allowance'
Users from Australia and New Zealand will use the 'P' button. P standing for 'Prime/Provisional'
What does the PC/PS/Allowance button do?
Using these buttons in your quote indicates to your client that these figures are allowances in your estimate. As a result, Buildxact will do two things:
We'll create a separate area in your quote to display these items to your client.
We'll adjust the markup on the item based on what you select for redistribution (the N/C/E buttons)
What is markup redistribution?
PC/PS/Allowance gives you the option of showing your client whether the markup added to an item is shown in the total cost of that item, or whether you want to show the item without markup cost and instead move that markup around on other items.
The default in Buildxact is to move markup from a PC/PS/Allowance item onto non-PC/PS/Allowance items within the same cost category. This is indicated by the 'C' button (for category) and described in Option 2 (see below).
How does redistribution work?
You have three options for moving markup in Buildxact, all are done via the N/C/E toggle button shown below.
Note: in the following screenshot the prices in the green box are the 'sell prices' so will show the effect of the redistribution without needing to print the quote, the client will see the same thing.
The items in this screenshot above are all $1000 with 10% tax and 20% markup, however, based on the option selected for redistribution, the prices shown are different. Clicking on the 'sell price' for any item will show more info about the markup on that item, screenshots of this are shown below under each option.
Option 1 - Don't move markup (N = None)
This option is basically the 'off' function. This is where markup will not be moved from this item onto any other item.
Clicking on the 'sell price' for this item shows that it has $200 of its own markup, and $300 from other items moved onto it (these other items would have had 'C' or 'E' selected for redistribution).
If an item is a PC/PS/Allowance item AND has the 'N' selected, the markup for that allowance will be shown to the client.
Option 2 - Move markup within the category (C = Category)
Selecting this option will mean that the item will always be shown to your client without markup. It will never be shown with markup and will never have any markup redistributed onto it. The markup that this item would have had (if applicable) has been moved to other items within the same category (except other C/E items). This setting is the default for all PC/PS/Allowance items.
Clicking on the 'sell price' for this item shows that this has no markup of its own, and no markup from other items is being applied either.
Note: If you click the 'C' button on an item where there are no other items in the category, the markup has nowhere to go, we default to using option 3, treating it as though you clicked the 'E' button
Option 3 - Move markup over across the whole estimate (E = Estimate)
Selecting this option means that the item will always be shown to the client without markup. It will never be shown with markup and will never have any markup redistributed onto it. The markup that this item would have had (if applicable) has been moved to across all other items (except other C/E items) within the whole estimate.
Clicking on the 'sell price' for this item shows that this has no markup of its own, and no markup from other items is being applied either.
Why do you move markup via redistributions?
There are three reasons we do this in Buildxact:
PC/PS/Allowances may be used in the case where the client uses selections and goes looking for the item they want. This means the amount they have to "spend" based on your quote needs to be the actual amount, not an amount with markup.
If there is a change or credit on a PC/PS/Allowance item during the job we want to work on the cost price or non-marked up price (unless you've used the 'N' option, in which case the client has seen the markup)
We aim to avoid a scenario where a client can calculate the markup you've added to a quote by doing math from the PC/PS/Allowance items sections on your quote.
Can I change the default redistribution setting?
Yes. The default redistribution setting is option 2 (C = Category), but you can change it to option 1 (N = None) per estimate.
You can change this default at an estimate level from within the estimate details section, as well as in your Business Details which sets the default for ALL future estimates.
To set the default for all estimates:
Go to My Business
In the 2nd side bar click Business Account
Click Business Details
Scroll down to Other Settings and click the blue edit pencil.
Select your preferred option from the dropdown menu
Click Save
To set the default at an estimate level:
Go into Estimate Details
Select your preferred option from the dropdown menu
How do PC/PS/Allowance items show on my quote?
Depending on where you're based the default options will be different.
North American users get the allowance items showing without tax by default and markup based on the redistribution settings.
Australian and New Zealand users will get PC/PS items showing with tax by default and markup based on the redistribution settings.
What we show on the quote (regardless of where you're based) is designed to give the client the "sticker price" of the item such that if they went into a store to look for the same item, they would be able to compare your quote price with the store price.
Can I change the settings for how PC/PS/Allowance items show on my quote?
Yes. From within the quote letter screen (regardless of the quote layout you use) you'll be able to change the PC/PS/Allowance settings as shown below.
The options you have are:
Base Total (excl. tax) - this option shows the PC/PS/Allowance items without tax and markup based on your redistribution settings. This is the default setting for North America.
Total (incl. tax) - this option shows the PC/PS/Allowance items with tax and markup based on your redistribution settings. This is the default setting for Australia and New Zealand.
Full Breakdown (incl. tax and markup boxes) - this option shows the full breakdown of the PC/PS/Allowance including the tax and markup based on your redistribution settings.
In addition to the above three options, you can choose to add the markup amount on the PC/PS/Allowance items as s percent.
Note that anytime we are showing markup amounts on PC/PS/Allowance items the markup amount will be consistent with the redistribution options chosen. Meaning if you choose to redistribute your markup for a PC/PS/Allowance item we'll always show the markup on that item as $0.
How do I settle PC/PS/Allowances when I get to the job stage?
All the settling/adjusting of PC/PS/Allowance items is done via variations.
For information on variations on contract jobs, click the button below.