Rate Basis Selection on Time Based Charge Rules
Purpose: To correctly select the best option for Rate Basis on Time Based Charge Rules
The pricing for our InSource projects can be based on several criteria to meet our business needs; Resources, Service Items, Billing Classes. When creating a time-based charge rule within a project there is a field named Rate Basis that allows the selection for how the billing rate will be selected for the service item on charges.
Rate Basis on Charge Rules
The rate basis field is located under the Rates Sub-tab on Time Based Charge Rules
REMEMBER: Check for special pricing prior to making a selection for rate basis
Rate Basis Options: Only one can be selected per charge rule. Multiple rules on the same project can have different rate basis selections based on the needs of the project.
This option will override the service item billing rate and use the rate associated with the Resource. When this option is selected an additional field will appear under the rates tab to enter in the resources to be assigned to the charge rule. This is also where the billing rate is entered for the resource. This allows for modification of the billing rate if there are special accommodations made for pricing. Multiple resources can be added to the resources tab that appears.
Multiple resources can be added to a charge rule with the rate basis selected as resources. Those resources can each have a specific billing rate assigned. When a charge is generated it will look for the assigned resource in the charge rule and assign the appropriate billing rate. If additional resources need to be added after charges have been generated with the rule another rule will need to be created with the additional resource. Charge rules cannot be edited once a charge has been generated through the rule.
Another feature shown when this selection is made is billing rates can pull over from each employee record. These rates can be set up on individual employee records under the Employee > Human Resource sub-tab. Rates set on the project task would then NOT be used for charge calculation.
2. Service Items
This option takes the rate from the service items in the NetSuite Item Master selected on the time entries logged for this project. This is the option to be selected on orders that are priced with standard pricing and the rate on the service item record is to be used for billing.
The exception to this rule is when the service item billing rate is revised when a project is still in process. When the next charges are billed the charge will pull the most recent billing rate. The system does not have the ability to hold the previous price listed for the remainder of the project. When this happens a new charge rule must be created and set to the order of #1; the rate basis will then be set to Resources (see #1) and the resource listed on the project will be listed with the previous rate that was charged throughout the project.
3. Billing Classes
This option pulls the billing rate associated with the billing class listed on the employee record. Billing classes group together resources that have the same billing rate. These billing classes are set up individually and then associated with each resource on the employee record. There can be multiple billing classes, but each resource can only have one billing class assigned. This feature must be set on the service item as well to flow through to bill correctly.
For example, you run a law firm and create two billing classes called Junior Partner and Senior Partner. You associate the Junior Partner and Senior Partner billing classes with the service item Initial Consultation and set the appropriate billing rates for each. Also, you select the Junior Partner billing class on John Smith's employee record. Then, when John Smith enters billable time for an initial consultation, the time is billed at the junior partner rate by default.
Billing Classes must be set up and in use within the system for this option to be active. (NOT Currently Active in our environment)
Example of Rate Basis on a Charge Rule: