Markups and discount

Below the category totals in the Cost summary panel come the markups, that is the Production fee, Insurance and up to three custom markups, with the Discount at the end. Each markup takes either a percentage or a fixed amount. For a percentage, the field below the row says what it is calculated on, and next to it you see the amount it was just calculated from.

What a markup is calculated on

The field below the row has three options.

• Production costs means the categories above the “Production subtotal” line. This is the usual base for a production fee, leaving out post-production.
• All costs means every category in the budget.
• Of the total with markups above means every category plus the markups that sit higher in the panel. Useful, for example, for usage rights charged on the total including the production fee.

A markup entered as a fixed amount has no base, so the option next to it makes no difference.

The choice applies to the current quote. Set the starting value for new ones in Settings → New quotes.

The production subtotal line

The line splits the categories into production costs and the rest. The row with its total shows up in the panel once a markup is calculated as a percentage of production costs, and your client sees it in the same place in the document. How to move it is covered in The production subtotal line.

Custom markups and their order

+ Markup below the list adds a row of your own, such as usage rights or a contingency. Three fit, because more would not fit the densest document template.

Reorder markups with the ⠿ handle, by dragging or with the arrow keys. The order only matters for a markup calculated of the total with markups above, because “above” means exactly what you see in the panel.

Discount

Enter the discount as a percentage or a fixed amount. The button below it switches between two modes.

• Discount before markups applies to the category costs only.
• Discount after markups applies to the costs together with the markups.

In both modes insurance stays outside the discount. It is a cost you pay the insurer whatever you agree with the client.

The discount does not reduce the markups. The production fee and other markups are calculated on the costs before the discount, and the discount comes off at the end.

To keep a category out of the discount, tick Exclude this category from discount below its name on the Cost items tab. The panel then shows Discountable costs and Non-discountable separately.

Example

The categories above the line come to £30,000, post-production below it to £10,000. £40,000 in total.

Without a discount the net total is £50,250. A 5% discount before markups is £2,000, that is 5% of £40,000. The same discount after markups is £2,472.50, because its base is £49,450, the costs with the production fee and usage rights, without insurance.