Billing Rates: To Configure Employee-Specific Rates

In this activity, you will learn how you can define item-specific billing rates by using rate tables, and how to bill a project by using these billing rates.

Story

Suppose that the West BBQ Restaurant customer has ordered from the SweetLife Fruits & Jams company a training session for its employees on how to use juicers that were previously purchased. Alberto Jimenez, a SweetLife junior consultant, has provided six hours of training, and Todd Bloom, a SweetLife senior consultant, has provided two hours of training. The standard rate of the training service, which applies to junior consultants, is $50 per hour, while the rate for the training provided by the senior consultants is $60 per hour.

Acting as the SweetLife project accountant, Pam Brawner, you need to configure the rate table that will provide billing rates based on the employee who performed the work and configure the appropriate billing rule that will establish the complex pricing model.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Enable/Disable Features (CS100000) form, the Project Accounting feature has been enabled to provide the project accounting functionality.
• On the Account Groups (PM201000) form, the LABOR account group has been defined.
• On the Non-Stock Items (IN202000) form, the CONSULTJR and CONSULTSR non-stock item has been created.

Process Overview

In this activity, you will create a rate type on the Rate Types (PM204100) form. Then on the Rate Lookup Rules (PM205000) form, you will define a rate sequence and the combination of settings that will be used for searching for the appropriate billing rate. Then you will configure the rate table on the Rate Tables (PM206000) form, and specify employee-specific rate values. Finally, on the Billing Rules (PM207000) form, you will configure a billing rule that uses the rate table with the applicable billing rates.

System Preparation

Before you start configuring billing rates, you need to launch the MYOB Advanced website and sign in to a company with the U100 dataset preloaded. You should sign in as the project accountant by using the brawner username and the 123 password.

Step 1: Creating Rate Tables and Rate Sequences

To create a rate table and specify rate sequences with employee-specific billing rates, do the following:

1. To add a new rate table, do the following on the Rate Tables (PM204200) form:
   1. Click Add Row on the form toolbar, and specify the following settings in the added row:
      • Rate Table: LABOR
      • Description: Rate Table of Employee Labor
   2. Save the rate table.
2. To create a rate lookup rule, on the Rate Lookup Rules (PM205000) form, do the following:
   1. In the Summary area, specify the following settings:
      • Rate Table: LABOR
      • Rate Type: LABOR
   2. Click Add Row on the table toolbar, and specify the following settings in the row:
      • Sequence: 1
      • Description: Labor rate sequence
      • Inventory: Selected
   3. Save the rate lookup rule.

Step 2: Specifying Billing Rates

To specify billing rates for different sets of settings, do the following:

1. On the Rate Tables (PM206000) form, to configure a rate table for the senior consultant, do the following:
   1. In the Summary area, specify the following settings:
      • Rate Table: LABOR
      • Rate Type: LABOR

        When you select the rate type, the system automatically selects 1 as the Sequence.

      • Rate Code: CONSULTSR
      • Description: A labor cost rate for a senior consultant
   2. On the Inventory tab, click Add Row on the table toolbar, and in the row, select CONSULTSR as the Inventory ID.
   3. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
      • Start Date: 1/1/2023
      • Rate: 60.00
   4. Save the rate table.
2. To configure a rate table for the junior consultant, do the following:
   1. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
      • Rate Code: CONSULTJR
      • Description: A labor cost rate for a junior consultant
   2. On the Inventory tab, on the table toolbar, click Add Row, and in the row, select CONSULTJR as the Inventory ID.
   3. On the Rate tab, click Add Row on the table toolbar, and specify the following settings in the row:
      • Start Date: 1/1/2023
      • Rate: 50.00
   4. Save the rate table.

Step 3: Creating a Billing Rule

To create a billing rule that uses employee-specific billing rates, do the following:

1. On the Billing Rules (PM207000) form, add a new record, and enter the following settings in the Summary area:
   • Billing Rule ID: TMLABOR
   • Description: Time and material with @Rate
2. In the left pane, click Add Row on the table toolbar, and enter the following settings in the row:
   • Step ID: 10
   • Description: Consulting
3. In the right pane, specify the following settings for the step selected in the left pane (which is the step you just added):
   • Billing Type: Time and Material
   • Account Group: LABOR
   • Rate Type: LABOR
   • If @Rate is Not Defined: Raise Error

     If no rate has been found, the corresponding project transaction will not be presented in the invoice. With the Raise Error option selected, the error is raised during billing. This prevents project costs from being omitted.

   • Invoice Description Formula: ='Invoice for '+[PMProject.ContractCD]
   • Line Quantity Formula: =[PMTran.BillableQty]

     The invoice line quantity will be equal to the project transaction line quantity.

   • Line Amount Formula: =[PMTran.BillableQty]*@Rate

     The amount of the invoice line is calculated as the billable quantity of the project transaction line multiplied by the corresponding rate value.

   • Line Description Formula: =[PMTran.Description]
   • Use Sales Account From: Inventory Item
   • Create Lines with Zero Amount and Quantity: Cleared
4. Save the billing rule.

You have configured billing rates that are based on various settings and a billing rule that will use these rates for billing.

To bill a project with these rates, complete the Billing Rates: To Bill a Project with Employee-Specific Rates activity.