How do you account for cost plus contracts?

We are a construction business. We often have cost plus contracts with our clients. This means that the client pays all Expenses + a markup as agreed. How can we add all billable Items, plus the agreed upon markup to a customer invoice? the Markup option is only available when electing to add Expenses to an invoice. All Vendor Bills are entered using Line Items and while I can add Groups of Line Items, there is nowhere to add the Markup - not the same markup applies to all Items.

Answer

Use Billable Two Sided Items on all purchases.

Once you bring them to the Sales Receipt or Invoice, use a Subtotal item. Then, list an Other Charge Item set for the Markup, such as 11%.

"not the same markup applies to all Items."

You can Organize them. The Subtotal is like a Paragraph, like this example that I do:

Mileage Charges, then Subtotal

Material charges (noninventory items), then Subtotal

Service Items, then Subtotal

I don't add the line for Markup, but Calculating Items (the various % based Other Charge items you set up) only calculate on the One Line above them. That's why you use Subtotal, then follow with Markup.
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