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Calculate a sales price based on an hourly wage

When invoicing hours in the payroll/temporary employment industry it is customary to calculate the price on the basis of the hourly wage, including allowance and margin. This option is also available in Profit.

Note: 

This function is only available if Profit HR and Profit Projecten are part of your licence. This function only works for the actual costing, not for the cost estimate.

Content

Description

For work types and cost types you can base the sales price on the hourly wage of the employee. This has the advantage that you always use the current hourly wage.

The employee’s hourly wage from HR serves as the basis for the sales price calculation. The hourly wage is multiplied by an hourly wage factor. The hourly wage factor comes from a table with possible hourly wage factors. This is where you also record the surcharge and the reduced hourly wage factor.

Next, you must record an hourly wage factor per project and/or employee.

Example: 

The hourly wage (for instance € 15) multiplied by the hourly wage factor (for instance 1.5) results in the sales price (€ 22.50).

You can also set discounts on the hourly wage factor. You also have a table for the discounts on the hourly wage factor. You link discounts on the hourly wage factor in the work type or the cost type. You can also specify if the work type needs to use the reduced hourly wage factor or the normal, linked hourly wage factor from the Hourly wage factor and surcharge main table as recorded at the project and/or employee level. For a work type you can also enter another hourly wage percentage, e.g., 150 for Overtime is 150% of the hourly wage.

A specific discount on the hourly wage factor is also possible for employees who are over 65. You set this up directly in the management settings of the project. The ‘65+’ hourly wage discount is automatically subtracted from the hourly wage factor when an employee turns 65, and is included in the sales price that is calculated based on the hourly wage.

In case of work types, Profit uses the following basic formula to calculate the prices:

(Employee hourly wage * ((Employee or project hourly wage factor (reduced or normal) - Hourly wage factor discount from work type - Hourly wage factor discount from employee - 65+ discount) * Hourly wage percentage from the work type) + Surcharge from the employee

For cost types the following calculation is used:

Number * ((Employee or project hourly wage factor (reduced or normal) - Hourly wage factor discount from cost type - Hourly wage factor discount from employee - 65+ discount)

Note: 

A valid sales price is not allowed for the work type or the cost type. The sales price based on the hourly wage is only calculated if there is no current sales price.

The hourly wage factor, the discount and the surcharge are preferably specified at the project level. If for particular employees you want to deviate, you specify this for the individual employees. The employee settings then take preference over the project setting. You can also decide to link only employees to an hourly wage factor and the like.

 

Hourly wage

Hourly wage factor

Hourly wage factor discount

Reduced hourly wage factor

Surcharge

Hourly wage %

Project

 

1.5

 

1.3

0.10

 

Employee Cas de Graaf

15.00

 

2.0

 

1.4

0.50

 

Work type M003

 

 

0.25

no

yes

- (so 100%)

The sales price for an hour’s work of this employee on work type M003 is: (€ 15 * 1.75) + € 0.50 = € 26.75.

Procedure

Also see

Process

Sales price based on hourly wage