MindSalt applies cost and billing rates in a specific order, using the most specific available rate first.
There are many options for configuring rates (both cost and billing rates) in the system. Rates can be set up at the project, task, client, and employee levels. Refer to the steps below to better understand how rates are chosen and applied by the system.
Cost Rates #
When a time entry is saved, the system finds the appropriate cost rate and applies it to the saved time. The steps below outline the order in which the system searches for a cost rate (beginning with #1). When a cost rate is found, the search is stopped and that cost rate is applied.
- The cost rate for the employee, client specific (can be defined in Admin->Employees->Rates). Ex: The company pays John a default rate of $25/hr, however, when John charges time related to the 'ACME' client, the company will pay John at a rate of $30/hr.
- The cost rate for the employee, not client specific (can be defined in Admin->Employees->Rates). Ex: The company pays Bob a default rate of $20/hr. Therefore, any work performed by Bob, unless specified and overridden at the project/task/client level will cost the company $20/hr.
- If no cost rate is found in the above steps, $0.00 will be used as the cost rate.
Billing Rates #
When a time entry is saved, the system finds the appropriate billing rate and applies it to the saved time. The steps below outline the order in which the system searches for a billing rate (beginning with #1). When a billing rate is found, the search is stopped and that billing rate is applied.
- The billing rate for the employee/project assignment (can be defined in Admin->Projects->Assignments). Ex: Bill is typically billed out at $75/hr, however, he will be billed out at $100/hr for work performed on the '2006 Ad Campaign' project.
- The billing rate specified for the project task (can be defined in Admin->Projects->Tasks). Ex: All 'Support' work performed on the 'Systems Development' project will be billed at $80/hr.
- The billing rate specified for the project (can be defined in Admin->Projects). Ex: All work performed on the 'ACME Advertising' project will be billed at $115/hr.
- The billing rate for the employee, client specific (can be defined in Admin->Employees->Rates). Ex: John is typically billed out at $90/hr, however, any work performed for the 'ACME' client will be billed at $75/hr.
- The billing rate for the employee, not client specific (can be defined in Admin->Employees->Rates). Ex: Bob's default billing amount is $80/hr. Therefore, any work performed by Bob, unless specified and overridden at the project/task/client level will be billed at $80/hr.
- If no billing rate is found in the above steps, $0.00 will be used as the billing rate.
Tip: Rates specified in the employee screen (Admin->Employees->Rates) can include an 'effective date'. This allows you to specify rates that may change through time (i.e. if the employee gets a raise). You may also use this feature to pre-enter a rate change that will take effect a month from now.
Note: When time entries are saved the system takes a 'snapshot' of the cost and billing rates at that point in time. This means that when making changes to cost and billing rates (as well as billable/non-billable flags), the changes will not effect entries currently in the database unless the time entries are 'touched' or updated. You may make adjustments to historical timesheet entries by using the Timesheet Cost & Billing Corrections tool.