Rates

To determine the costs and revenues involved in a project, in the cost estimate and actual costing lines you can record a cost price per hour or per unit. Profit then calculates the cost price amount per line from the number of hours or units and this cost price.

You can enter the cost price per entered line manually, but you can also define the cost price in advance and record it as a rate. The same applies to the sales price; this is the price per hour or per unit, which is charged to the client via the automatic project invoicing (invoicing on 'cost plus basis').

Description

Rates are used for both internal calculations as well as for calculating the invoice amounts. Profit Projects has a very extensive rates structure. Although you initially have extensive options, it is a good idea to make a well-informed decision.  

To ensure that your employees enter their hours with the correct rate, it is essential that you configure Profit Projects properly. As it is advisable to record these rates at the highest level possible (this saves a great deal of extra work), before starting to use Profit Projects you need to make some choices. In addition you must decide whether you want to use cost price rates in the same way as the sales price rates.

You can record the cost price rates and sales rates for hours based on up to three user-defined calculation bases. For example, you can enter rates per employee, per project or per work type but also for combinations such as: per employee per project, per work type per project or per employee per work type per project. This enables you to define price agreements at a detail level, while the general rates are applicable at a higher level.

You can link the calculation bases for the cost price rates and the sales rates but you can also use different calculation bases for both rates.

The rates for the hours in Profit Projects are date-dependent. This allows you to specify from which start date to which end date or during which period a rate applies. When determining the cost price and the sales price in the cost estimate and the actual costing, Profit compares the date entered to the rate validity date.

In Costs, for which you have indicated that these do not relate to hours but to units, you can define one default cost price and one default sales price. When entering the cost estimate and the actual costing you can opt to deviate from these default prices.

A separate price structure applies to materials (articles). You always define the cost price per article, but it is date-dependent. An extensive price structure is available for article sales prices, in which you can record prices per article, and in which you can also use price lists that apply to multiple debtors, or price agreements per sales contact. In addition you can record discounts per discount group for multiple sales contacts or discount agreements per sales contact. All sales prices and discounts are date-dependent. You can also enter promotional prices and promotional discounts which are valid during a specified period.

Procedure

• Determine rates

  For hours, you decide the calculation bases for these rates in the actual costing yourself. For the other costs - work types that were not created as a work type for hours - you can record both rates in the properties of the work types. For materials you can use the pricing structure for articles. You record the cost price rates in the properties of the Articles.

• Configure rates

  To determine the costs and revenues involved in a project, you can use a cost price rate and a sales rate per hour or per unit.

• Determine validity combination for rates

  In Profit Projecten you can define validity combinations in advance to determine who may post entries to which projects and with which work types. In order to set this up, you must first define the calculation bases.

• Add calculation bases for rates

  The hourly rates in Profit Projecten are always based on the hour type entered. If the hour type is entered, this is always the first calculation basis for determining the rate; if no hour type is entered then this means that the rate applies to all values which are entered in the customisable calculation bases.

• Add rates

  You can add the rates once you have set up the calculation bases for the rates.

• View and change rates

  You can view and change an existing rate.

• Import rates

  In this topic you will find additional information about importing rates.