Relationship between Net Rates and Selling Rates

When pricing a BOQ, it is important to understand that markup is not a persistent property of a bill item. Markup is merely a function applied to a net rate in order to calculate and assign a selling rate. After markup has been applied, only the net rate and the selling rate of a bill item are stored. From this point onwards, the net rate and the selling rate are not in any way tied to each other. Therefore, if the net rate of an item is updated for any reason, the selling rate will not be updated in accordance with the originally applied markup. If a change in net rate also requires a change in selling rate, then the markup will have to be reapplied to the bill item with one of the mechanisms described above. Markup must therefore always be thought of as a function, not a property.