Calculation types — Margin vs Billable
Every book (business unit) in brix has a Calculation type — either Margin or Billable. The choice shapes how brix turns your costs into customer prices and which fields you fill in.
The short version
Section titled “The short version”| Margin | Billable | |
|---|---|---|
| Mental model | Cost-up — enter your costs, target a margin, brix works out the sell price | Price-up — enter sell prices directly (via markup rules), brix uses them |
| Used by | Businesses that want to hit a target gross margin and don’t track marked-up unit prices in the pricebook | Businesses that already think in customer-facing prices (manuals/SOR/rate cards) and want to set them explicitly |
| Materials/Equipment/Assets | Cost only (no markup) | Cost is marked up using a Markup Rule (stepped tiers) to get the unit sell price |
| Labour | Configured under the Labour Costs tab — one row per rate (Standard, After-hours, Apprentice…) at a direct cost per hour | Single Billable Labour Rate ($/hour) on the Summary tab plus a Direct Labour Cost for margin reporting |
| Sell price formula | cost / (1 − desiredMargin/100) then add commission / finance / discount / other | (marked-up subtotal) / (1 − desiredMargin/100) then add commission / finance / discount / other |
How brix calculates the price (plain English)
Section titled “How brix calculates the price (plain English)”Margin (cost-up)
Section titled “Margin (cost-up)”- Add up the costs of materials, equipment, assets, and labour.
- Divide by
(1 − Desired Margin %)to find the base price that hits your target gross margin. - Add commission, finance cost, and any allowed discount cost — these are operating costs baked into the sell price.
- Apply GST for the inc-tax total.
Example with Desired Margin = 50%:
- Cost subtotal: $1,000
- Base price: 1,000 ÷ (1 − 0.50) = $2,000
- Commission (5%): $100, Finance (3%): $63 → adds to roughly $2,163
- GST 10% → $2,379 inc
Billable (price-up)
Section titled “Billable (price-up)”- Multiply each material / equipment / asset cost by its Markup Rule band (e.g. 0–50 = 150%, 50–200 = 80%) to get the marked-up unit price.
- Add the labour total =
Billable Labour Rate × (labour minutes / 60). - Take that subtotal and divide by
(1 − Desired Margin %)(when used to recover overhead, often set low or zero). - Add commission, finance cost, and any allowed discount cost.
- Apply GST.
Example with Markup Rule giving materials at $2.20/unit (cost $1.00, marked up 120%) and Billable Labour Rate $150/hr:
- 10 units × $2.20 = $22 materials
- 2 hours × $150 = $300 labour
- Subtotal: $322 → that is the sell price (no extra margin applied if Desired Margin = 0)
When to pick which
Section titled “When to pick which”Pick Margin if any of these are true
Section titled “Pick Margin if any of these are true”- You want to enforce a target gross margin (e.g. “every quote must clear 45%”).
- You track labour rates per technician/role (standard, after-hours, apprentice, weekend) and want them visible on the book.
- Your pricebook stores cost prices for materials and equipment, not customer-facing prices.
- You want brix to show projected margin as the quote is built so techs can’t undercut without permission.
Pick Billable if any of these are true
Section titled “Pick Billable if any of these are true”- Your business has a published rate card / SOR / supplier price book with retail prices already in it.
- You want a single billable labour rate that covers all techs, including overhead and profit.
- You use stepped markup tiers for materials (cheaper items marked up more aggressively than expensive ones).
- You don’t want margin recalculated dynamically — you want the price set by your rules.
What changes in the UI
Section titled “What changes in the UI”Margin book
Section titled “Margin book”- Labour Costs tab appears on the book.
- Summary tab shows Desired Margin and Minimum Gross Margin as percentage fields.
- Markup Rule field is hidden.
Billable book
Section titled “Billable book”- No Labour Costs tab — the labour rate is one field on Summary.
- Summary tab shows Markup Rule, Billable Labour Rate, and Direct Labour Cost instead of Desired Margin / Minimum Margin.
Cross-book reporting
Section titled “Cross-book reporting”Margin and Billable books co-exist in one workspace. Reports that show margin (the Score Card, Sales Goals, Dashboard) work for both types — the calculation that produces the margin differs, but the output is comparable.
If you run separate books for different trades, you can have HVAC on Margin and Electrical on Billable without affecting roll-up numbers.
Frequently asked questions
Section titled “Frequently asked questions”Can a single workspace mix Margin and Billable books?
Yes. Each book carries its own calculation type, so you can have HVAC on Margin and Electrical on Billable in the same workspace.
If I have stepped markups for parts but want to target a margin on the total, which do I pick?
Either works. If the stepped markup is the primary lever and margin is a sanity check, pick Billable and set Desired Margin low/zero. If the margin target is the lever and you’d rather brix derive prices from cost, pick Margin.
What happens to existing quotes if I archive a Margin book and replace it with a Billable book?
Existing quotes keep the prices they were built with. New quotes have to be created against the new book. Quote totals and reports remain accurate because every quote stores its own calculation result.
Why is the Desired Margin field on a Billable book?
Even on Billable, you can apply an overall margin on top of the marked-up subtotal — useful if you want to charge an additional margin on top of supplier price + labour. Most Billable books leave it at 0.
Do markup rules apply on a Margin book?
No. Margin books ignore markup rules on materials/equipment/assets — sell prices are derived from the cost subtotal and your target margin. If you need stepped markups, you want a Billable book.