Time Billing Price Formulae, Time Billing Price Lists, Time Classes

This page introduces the Time Billing Price Formulae, Time Billing Price Lists and Time Classes settings in the Job Costing module.


The Time Billing Price Formulae, Time Billing Price Lists and Time Classes settings will be useful if your business has various charge-out rates for the same work (e.g. standard rates, evening rates, weekend rates, holiday rates, and so on). Use these settings to manage such a multi-rate structure.

If you are using a multi-rate structure, it will be as part of an overall pricing system that will calculate charge-out rates for Service (time) and Plain (purchase and materials) Items registered against Projects using Time Sheets and Activities. In this section, we describe the steps required to build a multi-rate structure. For details about how a multi-rate structure fits in with the overall pricing system and an illustrated example, please refer to the 'Overtime' section on the 'Pricing and Costs - Time, Purchases and Materials from Time Sheets and Activities' page.

In planning such a price structure, follow these steps:

  1. The multi-rate structure primarily works at an Item Group level, not an Item level. Therefore, the first step is to ensure that all Service and Plain Items that will be used in Time Sheets and Activities and that can be charged out at different rates belong to Item Groups. You will be able to assign separate formulae to calculate charge-out rates to each Item Group, and one formula can be used for Items that do not belong to an Item Group. You cannot assign individual formulae to individual Items.

  2. Define Time Classes using the Time Classes setting. These represent the various rates. In this description, we will illustrate the configuration of a multi-rate structure using an example in which we will have four charge-out rates: standard, evening, weekend and holiday time. We will therefore need three Time Classes, as there is usually no need for a Time Class that represents standard time. Time Classes are described here.

  3. Define Price Formulae using the Time Billing Price Formulae setting: these are the formulae that will be used to calculate the different rates are calculated. In our example, we will need three Time Billing Price Formula records: one for the evening rate (standard rate plus 50%), one for the weekend rate (standard rate plus 100%) and one for the holiday rate (standard rate plus 200%). Time Billing Price Formulae are described here.

  4. Finally, enter one Time Billing Price List for each Time Class. These link the Time Classes with the Items, specifying how the basic sales and cost prices are to be modified in each situation. Time Billing Price Lists are described here.

Settings in the Job Costing module:


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