Set up timesheet cost rates, charge rates and pay rates
Cost rates and charge rates are used to calculate the amount charged to the customer and the actual cost of work done on a project by an resource and recorded on a timesheet.
A cost rate is the amount incurred by an individual when working for a period of time on an activity. For example, the cost rate of an employee for a particular job could be the total cost of hiring the employee (including wages, overheads and benefits) divided by the period of time that they work (in hours, days, or weeks).
Note: This has no link to or association with the unit cost entered on the project item to which the timesheet is analysed.
A charge rate value is the amount that will be raised (e.g. as revenue) and can be billed, for work by the individual in the same period of time.
For example, resource, John Smith, has the following rates applied to him (in a resource hierarchy).
| Cost rate name | Monetary Rate |
|
Standard Time |
20.00 |
|
Double Time |
40.00 |
| Charge rate name | Monetary Rate |
|---|---|
|
Normal |
28.00 |
|
Enhanced |
35.00 |
If John Smith enters a timesheet for 15 hours and selects Standard Time for the cost rate and Normal for the charge rate, the system defaults the cost value of the timesheet to £300 (15 hours at a rate of £20 per hour) and the charge value of the timesheet to £420 (15 hours at a rate of £28 per hour).
The value to bill is the charge value.
Pay rates are only used if the system is integrated with Sage Payroll. The pay rate value is the rate at which an individual is paid, which is set up in their Payroll employee record. The pay rate value may also be used as the cost rate value for employees imported from Payroll, or you can specify a different cost rate.
You create cost and charge rate types first. Once created, you choose which cost and charge rate individual resources or groups will use and set the value in the resource hierarchy.
If you use common cost and charge rates for groups of resources, you can set up these groups in the resource hierarchy and apply cost and charge rates for the whole group.
These cost and charge rates can then be selected when timesheets are entered.
To set up cost and charge rates
- Choose whether cost and charge rates are displayed and can be amended when timesheets are entered in the Timesheet and Expense Claim settings.
- Create Charge Rate Types.
- Create Cost Rate Types.
- Set the cost and charge rates for individual or groups of resources in the resource hierarchy.