You can use two types of rates, namely the internal and external rate structures to manage your projects. The internal rate structure is used to determine the costs incurred for a project when a person performs realizations whereas the external rate structure is used to determine the sales price to bill a customer.
Internal rates are the cost prices of hour items per hour used in a project. In businesses, it is common that a company define several internal rates for the same item so that it can use different rates if the item is used in different projects and/or realized by different people. Realizations are the registrations of the actual time and materials spent on a project by the person. Hence, the internal rate structure is very important in determining the internal rate to be used based on priority levels. This means, if several internal rates are created, the system will take the internal rate with the highest priority as the most important. The rate with priority level 1 will be used if the criteria are met. If not, the next prioritized rate will be used and so on. Only project managers or system administrators can define the structure. They can define the cost of each hour item based on different projects and/or person.
This rate is defined in the Rates tab of a project maintenance screen, whereby you define both the hour item and resource. For more information, see Creating and maintaining internal rates per project per item per person and internal rates per project per item/person. Any realizations of the corresponding hour item and person for the respective project will be based on this rate and not the purchase price of the hour item. The purchase price of the hour item is defined for the person in the Person tab of the hour item maintenance screen.
Note: This rate will be displayed in the Rates tab of the corresponding project maintenance screen.
This rate is defined in the Rates tab of a project maintenance screen, whereby you define the hour item only. For more information, see Creating and maintaining internal rates per project per item per person and internal rates per project per item/person. Any person realizing the corresponding hour item in the respective project will be assigned to this internal rate (except for the person that you have defined the internal rate for, according to priority level 1).
This rate is defined in the Rates tab of a project maintenance screen, whereby you define the person only. For more information, see Creating and maintaining internal rates per project per item per person and internal rates per project per item/person. Any hour item realized by the corresponding person in the respective project will be assigned to this internal rate (except for the hour item that you have defined the internal rate for, according to priority level 2).
This rate is defined in the Person tab of an hour item maintenance screen. By default, the corresponding person will be assigned to the cost price of the corresponding hour item.
This rate is defined at Internal rate in the Project section in the Extra tab of a resource maintenance screen. For more information, see Creating and maintaining entries for people. Any hour item realized for the corresponding person for any project will be assigned to the default internal rate, as long as the person is not linked to the hour item. A person is linked to an hour item in the Person tab of the corresponding hour item maintenance screen. When a person is linked to an hour item with a cost price of zero, zero will be used as the internal rate.
This rate is defined in the Rates tab of a project maintenance screen. For more information, see Creating and maintaining internal rates per job level. Any person with the corresponding job level will be assigned to this rate.
On the other hand, the external rates are the sales prices of hour items that can be billed to your customers. A project manager can view and maintain the rates used for a project at a glance from the project master card. Only project managers or person with price management rights can define the project price list or project external rate structure. The external rate structure is not available for the Trainings and Production projects as these cannot be invoiced. Like internal rates, the structure for external rates is also priority-based. These priorities are structured as follows:
With these priorities, several kinds of external rates can be defined:
This rate is defined in the Rates tab of a project maintenance screen, whereby you define the price list for both the standard item and person. For more information, see Creating and maintaining external rates per project per item per person and external rates per project per item.
This rate is defined in the Rates tab of a project maintenance screen, whereby you define the price list for the hour item only. For more information, see Creating and maintaining external rates per project per item per person and external rates per project per item.
This rate is defined by creating an external rate per project per item per person for an Internal project. Then, a Time & Material project is directly linked to the Internal project (first level parent) and assigned to the person and an item defined in the external rate of the parent project, to the corresponding sales order. The child project will be assigned to the rate defined for the parent project. However, this is applicable only to the child project which is one level down.
This rate is defined by creating a price list for an active customer at Order ➔ Price management ➔ Price lists, adding an item to the price list, and then creating a price agreement by adding a customer to the price list. For more information, see Creating and maintaining price lists for sales orders and sales invoices, Creating and maintaining item discounts in sales orders and sales invoices price list, and Creating and maintaining price agreements for sales orders and sales invoices. The sales price of the corresponding item in the invoice generated for this customer will be based on the sales price of this rate.
This rate is defined by creating a price list for an active customer at Order ➔ Price management ➔ Price lists and adding an item to the price list. For more information, see Creating and maintaining price lists for sales orders and sales invoices and Creating and maintaining item discounts in sales orders and sales invoices price list. The sales price of the item that has been defined in the price list will be used in the sales orders for any customer except for the customer in the price agreement.
This rate is defined by defining the sales price of an hour item in the Basics tab of an hour item maintenance screen. For more information, see Creating and maintaining standard sales prices.
This rate is defined by selecting an hour item at Rate in the Project section in the Extra tab of a resource maintenance screen. For more information, see Creating and maintaining entries for people. The sales price of the selected hour item will be used as the default external rate for the person.