Work rates used for cost analysis and billing can be managed using a variety of methods, depending on the method which works best for your organization.
Note: Rates calculated on time entries are ALWAYS calculated based on the rate value at the time the time entries are entered, and do NOT change with changes to rates. For example, a resource may get a rate increase (pay raise), but the rates for time entered prior to the raise do not change. Any time entry already made with an incorrect rate is best changed by deleting the time entry and reentering it after the rate change has occurred.
Burden rates are internal hourly cost calculations and billing rates are the hourly work rates charged/invoiced for the work. Although the methods are flexible, corporate standards should be deployed for a process consistency and ease-of-use. The methods for managing time and billing data can be summarized as follows.
Resources have the same rate for all projects
If the resource burden and billing rates are the same for all projects, the default rates in the user profile are the only rates to manage. With all other rate values "null," rates from the user profile will not be superceded by other rate values in the project and changes to the user profile rate will automatically be applied to all project budget calculations. Existing time entry rates will not be changed. Time entries entered following the update to the user profile will use the new rate.
Project resources have different rates for different projects
Every project will have different resource rates. The rates are still based on the resource, but the projects are negotiated differently. Always change the resource rates at the project (see Add Resources to Projects
), while leaving the rates in the tasks null for managing rates on a project-by-project basis. This method is often combined with the method above (Resources have the same rate for all projects) if the resource burden rate is always the same, but the billing rate varies by project. For example, you would leave the burden rate null for the resource at the project level so that it always calculates the burden from the user profile, but assign a billing rate for the project to override any default value for the billing rate in the user profile.
Project resources have billing rates based on their resource type/role
Every project may be assigned billing rates based on the agreement with the customer for types of work being done. For example: Regardless of the chosen resource for any given task, if the task involves senior engineering, the task should calculate the rate agreed upon for all senior engineering work. Rates for this scenario are managed by a combination of the resource type/role assigned to the task and the Contracts
assigned to the project. You may choose to use the contract rates for billing rate information, but leave the burden rate calculation to the rate assignment in the user profile.
See the Time Entry Rate Flow and Project Costing Rate Flow for flow diagrams of rate values as they pertain to tasks, time entries, projects, companies and resources.