How Genius Project Manages Rates

 

Introduction

Multi-Rate Management

Definition of Resource Rates

Definition of "Company/Customer Rates"

Definition of Project Rates

Hierarchy of Rates in a Project Modules/Databases

Updating Rates

 

Introduction

Geniusproject is very flexible in terms of rate management. It can be as simple as a unique internal cost and billing rate, as very sophisticated rates definition according to the following parameter:

• Resource
• Period
• Activity type
• Customer
• Project

Resource Rates

Resource rates are the key to compute Time & Material labor costs and labor billing amounts. In this document, the "rate" term actually refers to both "Cost" rates and "Billed at" rates.

Rates per period

Rates can be defined by period. 

A rate per period record has this structure:  "From date," “Cost rate,” “Billing at rate.

”The "To” date is defined by the "From date" of the next record.

Rates per Activity Type/Multi-Rate Management

Rates can vary according to the activity type. By default, this option is disabled and rates are defined regardless of the activity type. The option is available in the general setup document of the Resources database. The field is labeled "Multi rate management." 

If the option is enabled, the system selects the rate according to the activity type.

If the option is disabled, the system uses the default rates.

 

Multi-Rate Management

Multi-rate management is an optional feature, which can be enabled in the General setup document of the Resources module. 

Multi-rate management allows companies to assign different rates to their resources depending on the type of work or activity they are performing in a project. 

Geniusproject supports up to 11 different rates for companies and resources.

Each resource will have a default rate and then up to ten other potential rates that will vary depending on the activity type of the tasks they are working on. When calculating a resource’s cost for work on a particular task, the system will automatically use the rate associated to the activity type defined in the task. If the activity type has not been defined, or if there is no specific rate assigned to the activity, the system will automatically use the default rate.

Note: the activity types are defined in the General setup document of the [Resources] module, as well as the Keywords lists setup document of each of the Projects modules.

Definition of Resource Rates

Rates in the Resource Form

The simple way to define the rate of a resource is to edit the resource form and access the “Rate” tab. If the “Import the rate” option is set to “No,” the authorized user can select the currency and create rates per period, possibly per activity type if the option is enabled.

Fields	Use
Import the rates	Default value is “no”. Set to “yes” if the generic company rates defined during the setup of the [Resources] module should be applied to the current resource.  If the generic rates should not be imported, then the rate fields at the bottom of the form will be editable.
Currency	The currency for the rates; Single selection field. The list of choices comes from the currencies set in the General setup document of the Portfolio. If the “Import the rates” checkbox is checked, then this field is not editable and the currency used is the one defined in the corresponding 'Rates' setup document.
Cost center	The resource’s cost center.  Single selection field.  The list of choices comes from the cost centers defined in the General setup document.
Rates management	If it is defined in at least one Company document that the company rates management is by cost center, then the list of choices is: By resource type By cost center The rates of the resource are then fetched from the Rates setup documents according to the following algorithm: Look for a “Rates” document matching the “Company” - 'Location' - “Selected criterion” fields. If not found, look for a document matching the “Company” and “Selected criterion” fields, defined for all locations (“Company” - “All” - “Selected criterion”). If not found, look for a document matching only the field “Selected criterion”, defined for all companies and locations (“All” - “All” - “Selected criterion”). If not found, look for a document matching the “Company” and “Location” fields, defined for all “Selected criterion” (“Company” - “Location” - ”All”). If not found, look for a document matching only the field “Company”, defined for all locations and “Selected criterion” (“Company” - “All” - “All”). If not found, then apply the default rates (“All” - “All” - “All”).
Period	Start date of the period.  Rate definition will be in force at starting date, untill next period, meaning starting date of the next row in the table. Forever if no next row exists.
Default Cost	Standard internal cost of the resource (cost price) per hour.  Editable if “Import the rates” is not checked, otherwise retrieved from the corresponding “Rates” setup document
Default billed at	Standard billing rate of the resource per hour.  Editable if “Import the rates” is not checked, otherwise retrieved from the corresponding “Rates” setup document
Activity Type X Cost	Editable if “Import the rates” is not checked, otherwise retrieved from the corresponding “Rates” setup document Appears only if multi-rate management is set to ‘yes,’ definition of the internal cost of each activity type. If blank, default Cost will apply.
Activity Type X Billed	Editable if “Import the rates” is not checked, otherwise retrieved from the corresponding “Rates” setup document Appears only if multi-rate management is set to yes, definition of the billing rate of each activity type. If blank, default billing rate will apply.

Definition of Default Rates

When the number of resources is large, it becomes tedious to define and maintain the resource rates. We call those default rates, Resource rates, as opposed to, Company rates, which are designed for customer rates plans.  Don’t be confused, since “Resource default rate” can be defined by companies.  

Geniusproject therefore allows to define default rates as a combination of the criteria below:

• Company / location
• Resource type
• Cost center

Note: Definitions by cost center and by resource type are mutually exclusive.

Note 2: The Company drives the option “by Resource Type” or “by Cost Center.”

Note 3: In default rates, the “Company” corresponds to the organization a resource is working with.

 

Defaults rates are available in the Resource setup. Select the “Rates” tab, then “Default resources rates” in the left pane.

To add a new “Default resources rates”: 

• Select “Create\Rate” then fill the form
• First set the “Rate type” to “Resources”.
• Fill in the fields to setup you default rate definition; “Currency” is mandatory.
• Fill in the table rate by period and activity type (if enabled). 

Note: All fields but the Currency can remain empty, in order to define a default rate that apply to all resources.

Note 2: Default rate definitions are not mutually exclusive; when populating the rate of a resource, the system goes from the most specific definitions to the most general ones.

Fields	Use
Rate type	Company or resource rate definition, select, “Resources.”
Company	The company the rates will be applied to.  If the field is left blank the rates will apply to all resources not associated to a specific company, and to resources associated to companies without a specific 'Rates' document. Single selection field.
Location	The company location the rates will be applied to. An empty value means the rates will apply to all. Single selection field. Note:  Be sure to save the document before proceeding to the next fields to insure the proper options are inherited from the selected company profile documents.
Resources types/Cost centers	Visible only if the 'Company' field is blank. Indicates whether rates are driven by resource type or the cost center.
Resource types	If the company specified in the Company and Location fields have ‘Resource type’ set in the rates management section of their company profile document, this field will be displayed; OR if the Company field is blank and ‘Resource type’ is selected in the field above, this field will be displayed; otherwise it is hidden.  The selected option is the resource type the rates will be applied to. If the field is blank, then the rates will apply to all resources types without a unique rates document.  Mono selection field. The list of resource types comes from the General setup document.
Cost center	If the company specified in the Company and Location fields have ‘Cost center’ set in the rates management section of their company profile document, this field will be displayed; OR if the Company field is blank and ‘Cost center’ is selected in the field above, this field will be displayed; otherwise it is hidden. . The selected option is the cost centers the rates will be applied to. The list cost centers is defined in the 'General' setup document. If 'By default', then it will apply to all resources without cost center or with a cost center for which no 'Rates' document does exist. Mono selection' field.
Currency	The currency for the rates. Single selection field. The list of choices comes from the list of other currencies defined in the 'General' setup document.
Period	Start date of the period. Rate definition will be in force at starting date, until next period, meaning starting date of the next row in the table. Forever if no next row is present.
By default Cost	Default internal cost.
By default Billed at	Default billing rate.
Activity Type X Cost	Appears only if multi-rate management is set to yes, definition of the internal cost of each activity type. If blank, default Cost will apply.
Activity Type X Billed	Appears only if multi-rate management is set to yes, definition of the billing rate of each activity type. If blank, default billing rate will apply.

Here’s an example of a default rate. According to the form below, resources working with “Genius Inside” in “Lausanne” will inherit the default rates defined in the grid.

Definition of "Company/Customer Rates"

Customer rates are defined in the setup of the resource db.  We call those rates, Company rates, as opposed to “Resource rates,” which are designed to define default rates plans when no customer rates plans applies.  Don’t be confused since “Resource default rate” can be defined by companies.  

To add a new company rates, select Create\Rate.

Fill in the form:

• First set the “Rate type” to Company.
• Select the customer, location (if applicable), then the currency
• Fill in the table rate by period and activity type (if enabled)

Fields	Use
Rate type	Company or resource rate definition, select “Companies.”
Company	The company the rates will be applied to. Mandatory If the field is left blank the rates will apply to all resources not associated to a specific company, and to resources associated to companies without a specific 'Rates' document. Single selection field.
Location	The company location the rates will be applied to. An empty value means the rates will apply to all. Single selection field. Note:  Be sure to save the document before proceeding to the next fields to insure the proper options are inherited from the selected company profile documents.
Resource types	If the company specified in the Company and Location fields have ‘Resource type’ set in the rates management section of their company profile document, this field will be displayed The list of resource types comes from the General setup document.
Cost center	If the company specified in the Company and Location fields have ‘Cost center’ set in the rates management section of their company profile document, this field will be displayed The list cost centers is defined in the 'General' setup document. If 'By default', then it will apply to all resources without cost center or with a cost center for which no 'Rates' document does exist. Mono selection' field.
Currency	The currency for the rates. Single selection field. The list of choices comes from the list of other currencies defined in the 'General' setup document.
Period	Start date of the period. Rate definition will be in force at starting date, until next period, meaning starting date of the next row in the table. Forever if no next row exists.
By default Cost	Default internal cost.
By default Billed at	Default billing rate.
Activity Type X Cost	Appears only if multi-rate management is set to yes, definition of the internal cost of each activity type. If blank, default Cost will apply.
Activity Type X Billed	Appears only if multi-rate management is set to yes, definition of the billing rate of each activity type. If blank, default billing rate will apply.

Definition of Project Rates

Maintained for compatibility with older versions.  Has been replaced with Company/Customer rates

Hierarchy of Rates in a Project Modules/Databases

The system determines what rate applies according to three keys, in the following order:

1. Level
2. Period
3. Activity type 

The algorithm below works for both resource costs and billing rates. It defines what rate the system uses when computing a labor cost.

Selecting the Rates "level"

Levels are Project rates, Customer Rates or Resource Rates.

When the system looks for what rate applies, e.g. when computing the planned cost of an assignment, the system follows these steps: 

• Are there rates specific to the project? If yes, use these rates.
• If not, are there rates specific to the customer (assuming there's a customer selected in the project and the proper "use customer rates" options are selected)? If yes, use these rates.
• If not, select the resource rate of the project database.

Note: A resource rate is defined in the Resources module and available in all Project modules where the resource is published. However, the rate in a project module/database can be "desynchronized" from the resource module, then specific to a project module.

Selecting the Period

Once the level is defined, the system checks what period applies.

Planned cost / billing amount:  The system uses the "planned start date" to define what rate per period applies; e.g., if an assignment is scheduled from 1/1/13 to 2/28/13, the system searches for a rate per period using 1/1/13 as a key.

Actual cost / billing amount: The system uses the actual date to define what rate per period applies; e.g. if a resource records the time spent on 1/25/13, the system searches for a rate per period using 1/25/13 as a key.

Selecting the Activity Type

This step applies if the multi rate management option is enabled.

The system checks what rate is defined for the activity type. If no rate is defined for the activity type, the system considers the rate is set to 0, even though a default rate could exist.

Geniusproject supports multi-rate and multi-level rate management for the different companies(customers), projects, periods and individuals listed in the [Resources] module. Geniusproject offers the flexibility to assign default rates to companies and resources while allowing specific rate changes at the project or task level.

In this document, “Rate” includes two elements, the internal cost of the resource, and the resource’s billable cost.

The “Standard rates” document lets you capture default rates and rates by activity type, provided that “Multi-rate management” has been enabled in the “General” setup document. 

Updating Rates

If a company’s list of standard (default) rates has been modified, you can update them in all the companies by using the “Actions \ Update resources rates” action located in the “Standard rates” setup view.

When creating a new resource, they will inherit the standard rates from the company and location they belong to.

If the company’s rates have been modified, the changes can be applied to all company resources by navigating to the [General] tab of the [Resources] module setup and selecting “Update the resources rates” from the [Actions] menu.

Note: The updates will only be applied as long as the option to “Import the rates” has been enabled in the “Resource” forms.

Resources can be published to or updated in the different [Projects] module(s), by navigating to the Resources tab ->Resource list” view in the contextual navigation menu and selecting either of the Publish option from the Destinations dropdown menu.

The resources” rates are updated at the same time if the “Import the rates” option is enabled in the “Resource” documents in the Projects module(s), or if the resource was not previously published in the Projects module(s).