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Pricing, Profit & Overhead

Where to find it: Settings → System Settings → Initial Settings / Quote Invoice Options

 

Markup vs. Margin

This setting determines the formula used to calculate profit across all quotes, invoices, and work orders.

  • Margin — The profit is expressed as a percentage of the selling price. A 50% margin on a $100 cost means you sell it for $200.

  • Markup — The profit is expressed as a percentage of the cost. A 50% markup on a $100 cost means you sell it for $150.

The majority of stores use Margin. Some states (e.g., Georgia) traditionally use Markup. This setting affects every profit calculation in the system, so it should be confirmed during onboarding and not changed once the account is active.

Company Minimum Profit Percentage

Sets a threshold profit percentage for standard quotes and invoices. If a line item or overall quote falls below this threshold, a warning indicator (shown in red with an alert icon) appears in the profit summary box on the quote, invoice, or work order.

This is an alert only — it does not block the user from saving or sending the document.

Repair Minimum Profit Percentage

Same behavior as the Company Minimum Profit Percentage, but applies specifically to Repair Quotes. A repair quote is linked to an original completed job — used when a customer reports an issue after installation. Because no revenue is expected, a minimum (e.g., 10%) is set just to cover costs.

Default Profit Percentage

Sets the default profit/markup percentage applied to manually entered line items that do not have a profit margin already defined (i.e., items not selected from the product list).

 

For example: if a salesperson types in a custom line item without choosing from inventory, this default percentage will be automatically applied.

Important: This setting does not apply a blanket markup to the whole invoice. It only acts as a fallback for individual line items that lack their own margin. Products selected from the product list use their own stored margin.

Show Net Profit

When enabled, a "Net Profit" figure is displayed on quotes, invoices, and work orders. Net profit is calculated by subtracting commission costs from gross profit.

 

When disabled, only gross profit is shown.

 

Some businesses choose to hide net profit so salespeople cannot see the full cost and commission structure.

Overhead Settings

Overhead allows a percentage-based cost to be added on top of your material and/or labor costs to account for indirect expenses like delivery, handling, or operating costs.

 

Apply Overhead to Subtotal — When checked, the overhead percentage is applied to the invoice subtotal (the total selling price after margin). When unchecked, overhead is applied to the cost of the material and/or labor (before margin).

 

Material Overhead % — The overhead percentage applied to material line items.

 

Labor Overhead % — The overhead percentage applied to labor line items.

Overhead is factored into commission calculations. If overhead is enabled, it reduces the profit base used to calculate a salesperson's commission.

Important: Overhead should be clearly labeled on quotes, invoices, and cost sheets (e.g., "3% overhead on material cost") to avoid customer confusion.

Commission Based On

Determines which line items are used as the basis for salesperson commission calculations. Options typically include material only, labor only, or material and labor combined. The majority of stores use material and labor combined.

Note: Confirm this setting is behaving consistently across the quote, invoice, work order, and cost sheet views.