---
title: Standard Codes - Labor, Part, & Shop Supply Contracts
description: This article explains how to set up labor, part, and shop supply contracts
---
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# Standard Codes - Labor, Part, & Shop Supply Contracts
### Add a Labor Contract
To add a labor contract go to **Administration** \> **Standard Codes **
### 
In the Standard Codes screen go to **Customer** \>** Labor Contract**
To add a new Labor Contract click on **+ Add**
#### Labor Contract Wizard
### Contract Info
Input a **Code** and **Description** for the Labor Contract
**Note: One labor contract must be set as the Default Labor Contract so EMDECS knows which labor rate to charge customers without a labor contract assigned to them**
1. The **Active** checkbox should be checked as long as the contract is still in use. Unchecking Active will disable the contract
2. The **Default** check box can be checked if this contract should be the default labour contract
3. The** Notes** field is optional
Click** Next **to move on to **Contract Rate**
### Contract Rate
Input the **Hourly Rate **and** Sublet Markup %** if applicable.
1. The **Hourly Rate** is the amount to be charged for every charge hour inputted on a labor line in an RO
1. The total charge is automatically calculated using the contract rate when the charge hours column is filled in for added labor on a RO
2. If your shop does sublet repairs and applies a markup to sublet labor fill in the **Sublet Markup % **field
Click **Next** to move on to **Override by Facility**. If you do not need to input any overrides you can click **Save/Exit **now to finish creating the Labor contract.
### Override by Facility
Labor contracts can also be configured with different rates for different shop locations/facilities.
1. For example, a shop facility in another state or province (or in an urban area versus a rural area) may have higher costs and require a higher hourly rate.
Creating overrides is optional but to create an override by facility click **+ Add Labor Rate**
A line will appear where you can choose the** Location** and input an **Hourly Rate** and** Effective Date**
1. Check or uncheck the Active checkbox to enable or disable the override
Click **Next** to move on to **Override by Equipment Shift**. If you do not need to input any more overrides you can click **Save/Exit **now to finish creating the Labor contract.
### Override by Equipment Shift
To add an Equipment Shift override click **+ Add**
In the pop-up select a **Location** and **Equipment Shift**
1. Click** + Add New/Manage** to create a new Equipment Shift or to edit existing ones
2. Check or uncheck the Active checkbox to enable or disable the override
Click **Save/Exit **when you are finished adding Equipment Shift overrides
Click **Save/Exit** to finish creating the Labor contract
#### Assigning a Labor Contract to a Customer
**Note: If a customer does not have a labor contract assigned to them then the default labor contract rates will apply**
Go to **Administration** \> **Customer **and select the customer you'd like to assign a contract to
Under the **Details** tab on the right-hand side there is a section called** Contracts**
Click on the labor field to select a Labor Contract for the customer
Click on **+ Add** to create a new labor contract. This will take you to the **Labor Contract Wizard**
If you select a labor contract an **Edit** button will appear which will allow you to edit the selected labor contract
Click **Save/Exit **then** OK** to save your changes and assign the labor contract to the customer
Here is an example of an RO for LC Bus Company which we assigned the STD2 Labor Contract to.
As you can see the Hourly charge shows a rate of $60 which was determined by the STD2 contract.
The total charge is automatically calculated using the contract rate when the charge hours column is filled in for added labor on a RO.
### Add a Parts Contract
For more information on Part Markups and Pricing click[ here.](https://help.emdecs.com/portal/en/kb/articles/configure-part-markup-and-pricing)
To add a parts contract go to **Administration** \> **Standard Codes **
In the Standard Codes screen go to **Customer** \>** Parts Contract**
To add a new Labor Contract click on **+ Add**
### 
### Parts Contract Wizard
#### Contract Info
Input a **Code** and **Description** for the Parts Contract
**Note: One parts contract must be set as the Default Parts Contract so EMDECS knows which rate to charge customers without a parts contract assigned to them**
1. The**Active** checkbox should be checked as long as the contract is still in use. Unchecking Active will disable the contract
2. The **Default** check box can be checked if this contract should be the default parts contract
3. The **Notes** field is optional
Click **Next** to move on to **Markup**
### Markup
The following markup fields are available:
**Markup %**: Enter a percentage to markup parts based on your default costing method (Average, Standard, Last, Landed, or Average Landed)
**Discount %**: Leave this field blank unless you want to maintain retail prices for all of your parts.
If you enter a value here, the **sale price of parts will be based on each part's retail price instead of purchase cost history**.
1. To sell parts at a **fixed retail price**, enter a percentage to discount off the retail price
1. Enter 0% to sell at the retail price without a discount
2. To sell parts with a **retail price markup**, enter 0% in the field and then refer to the section titled [Change Retail Prices in Bulk](https://help.emdecs.com/portal/en/kb/articles/configure-part-markup-and-pricing) section for instructions on how to set retail markup percentages for parts in bulk.
**Core Markup %**: Enter a percentage if cores should be marked up differently from other parts. Leave this field blank for core markups to be the same as non-core parts
**Core Discount %: ** Only applicable when using the Discount % option above. Enter a percentage if cores should be discounted at a different rate. Leave the field blank if cores should be sold at the same discount rate as non-core parts
**Sublet %: ** Enter a percentage to markup the cost of sublet parts. This field is optional.
**Note: You can only enter Markup percentages OR Discount percentages, not both**
Click **Next** to move on to **Markup by Cost Range**. If you do not need to input any overrides you can click **Save/Exit **now to finish creating the parts contract.
### Markup by Cost Range
The Markup by Cost Range step is optional and only applicable when you want to have different markup rates based on the cost of the part.
For example, you might want a 50% markup on any parts that cost less than $10 while having a 35% markup on all other parts.
**Note: Markup by Cost Range cannot be used with a discount contract**
With multiple cost range markups entered, you have the flexibility to vary your markup rates for different part cost ranges, as pictured in the example below.
To add cost range markups, click **+ Add Markup **
1. In the **Include Up To** field enter the cost of the parts to be included in the Markup %
2. In the **Markup %** enter the markup percentage for parts within the cost range
3. In the **Core markup %** enter the core markup percentage if your markup should be different than the Markup % for core parts
Click **Next** to move on to **Markup by Markup Code**. If you do not need to input any more overrides you can click **Save/Exit **now to finish creating the parts contract.
### Markup by Markup Code
The **Markup By Markup Code **screen is optional and only applicable when you need to price or markup groups of parts differently from other parts in EMDECS.
For example, if you need to sell oil filters with a different markup percentage from other parts, this can be accomplished by creating a markup code.
To set up a **Markup by Markup Code** click **+ Add**
1. In the **Location** field type in the location name and select it or click on the magnifying glass to select a location
2. In the **Markup Code** field choose a code from the drop-down list
3. The **Effective Date** and **Termination Date** are optional
4. Check or uncheck the **Active** checkbox to enable or disable the override
### Add Markup Codes and Rates
If you have not created any markup codes in your system the **Markup Code** drop-down list will be blank.
Click **+ Add New / Manage** to create a new markup code
Each markup code can have multiple markup groups with different rates.
Click **Add Markup Code **
In the pop-up enter the **Code** and **Description **then click** OK **
1. Check or uncheck the **Active** checkbox to enable or disable the Markup Code
Make sure you select the correct Markup Code at the top then click **+ Add Rate**
Choose a **Markup Group **and enter the **Markup %** or **Discount %**.
The **Core Markup/Discount %** fields should be left blank unless you want to markup or discount core parts at a different rate
1. Check or uncheck the **Active** checkbox to enable or disable the Markup Code Rate
2. Additional rates for the came Markup code can be added by clicking **+ Add Rate **again
Click **OK** to save the entered rates
In the example below you can see we added a Markup Code called Oil Markup. The Oil Markup Code has 2 rates; Conventional with 15% markup and Synthetic with 20% markup.
If you are finished adding Markup Codes and Rates click **Close**
****
After adding all your Markup Code Assignments you are finished with the Parts Contract and you can click **Save/Exit **
#### Assign Markup Groups to Parts
In order for the Markup Codes and Rates to take effect the parts must be assigned to the correct **Markup Group**
Navigate to **Parts **\> **Part Master **
In the Part **Settings** tab you can add a **Markup Group** from the drop-down list
#### Assigning a Parts Contract to a Customer
**Note: If a customer does not have a Parts contract assigned to them then the Default Parts contract rates will apply**
Go to **Administration** \> **Customer **and select the customer you'd like to assign a contract to
Under the **Details** tab on the right-hand side there is a section called** Contracts**
Click on the **Parts **field to select a Parts Contract for the customer
Click on **+ Add** to create a new parts contract. This will take you to the **Parts Contract Wizard**
If you select a parts contract an **Edit** button will appear which will allow you to edit the selected Parts Contract
Click **Save/Exit **then** OK** to save your changes and assign the Parts contract to the customer
Here is an example of an RO for LC Bus Company which we assigned the STD2 Parts Contract to.
As you can see the **Unit Cost** is $2.00 and a **Unit Charge** is $2.40
The charge shows a 20% markup of $0.40 which was determined by the STD2 contract.
### Add a Shop Supply Contract
To add a Shop Supply contract go to **Administration** \> **Standard Codes **
### 
In the Standard Codes screen go to **Customer** \> **Shop Supply Contract**
To add a new **Shop Supply Contract** click on **+ Add**
### Shop Supply Contract Wizard
#### Contract Info
Input a **Code**and **Description**for the Shop Supply Contract
**Note: One Shop Supply Contract must be set as the Default Shop Supply Contract so EMDECS knows which rate to charge customers without a Shop Supply contract assigned to them**
1. The**Active** checkbox should be checked as long as the contract is still in use. Unchecking Active will disable the contract
2. The**Default**check box can be checked if this contract should be the default Shop Supply contract
3. The **Notes** field is optional
Click **Next** to move on to **Contract Rate**
### Contract Rate
Select if you'd like the contract to be **Based on** **Parts**, **Labor **or **Parts & Labor**
1. The **Up to Amount **field is optional but you can enter a value here to show the max amount you can charge for Shop Supplies
2. The **Default Percent** field is the percentage of the total amount of Parts and/or Labor you will charge for Shop Supplies. This field is mandatory.
Click **Next **to move on to **Non-chargeable Taxes**. If you do not need to input any overrides you can click **Save/Exit** now to finish creating the Shop Supply contract.
### **Non-chargeable Taxes**
If your shop supply fee is non-taxable, click **+ Add Tax** to add any taxes that should not be applied to the shop supply fee.
A new line will appear where you can choose the **Tax** Code and** Effective Date**.
Check or uncheck the **Active** checkbox to enable or disable the Non-chargeable Taxes
Click **Next **to move on to **Override by location**. If you do not need to input any more overrides you can click **Save/Exit** now to finish creating the Shop Supply contract.
### **Override by location**
To add a location override click **+Add Location**
1. Select a **Location** from the drop-down list
2. Select if you'd like the location override to be **Based on** **Parts**, **Labor **or **Parts & Labor**
3. The **Effective Date** and **Termination Date** are optional
Click** Save/Exit **to save the location details
Click **+ Add Percent **to add the shop supply percentage for the location override
In the pop-up input the **Up to Amount **and **Percent **then click** Save/Exit**
Click **Save/Exit** to finish creating the Shop Supply Contract
#### Assigning a Shop Supply Contract to a Customer
Go to** Administration** \> **Customer** and select the customer you'd like to assign a contract to
Under the **Details** tab on the right-hand side there is a section called **Contracts **
Click on the **Supply **field to select a Shop Supply Contract for the customer
Click on **+ Add**to create a new Shop Supply contract. This will take you to the Shop Supply Contract Wizard
If you select a Shop Supply contract an **Edit**button will appear which will allow you to edit the selected Shop Supply contract
Click **Save/Exit **then **OK**to save your changes and assign the Shop Supply contract to the customer
Here is an example of an RO for LC Bus Company which we assigned the STD2 Shop Supply Contract to.
As you can see the** Total Charge** is $200 and the **Shop Charge** is $10
This is determined by our Shop Supply Contract which is 5%
(5% of $200 = $10)
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