Mark Ups & Margins in the fp. System
In your fp. System, External Expenses can be marked up by a percentage value. Several of our users though, think more in terms of margins, rather than mark ups.
Please review this article to learn how you can get the margin values you want, through the use of the mark up fields.
Which is which?
How to convert?
The function point system allows you to enter a mark up percentage using 4 decimal places. Please convert a desired fixed margin using the formula above.
Example: You want to have a 20% profit on every expense that goes through the system.
Mark up % = 1 / (1-.20) -1
Mark up % = 25%
By charging a 25% markup you will ensure a 20% profit margin.