How does PPO calculate resource rates?

PPO allows a resource rate ($/hour) to be associated with a resource in order to produce financial reports.  This information can be combined with time entry information in order to produce time entry costing reports or to automate labour cost calculation on projects.  It can also be combined with planning / resource allocation information in order to produce project costing reports or labour cost forecasts.

Resource rates

On the resource record, you will see that PPO caters for three rates to be associated with a resource. You can change the caption of these as needed based on your specific requirements.  You can for example have rates for internal projects, external projects, and pro-bono projects. In the below screenshot assume that this is the information for Harry Adams.


Rate to use

On the project entity, you will see a Rate to Use field which refers to the three rates that are defined on the resource record. In the screenshot below for the Fixed Admin Fee project, the "Standard Charge Out Rate" is selected, but you can use any of the three rates that have been defined.  Note that if you change the caption of the fields on the resource record, the values available on the project automatically be updated.


Calculation of the rate

Based on the examples in the above screenshots, PPO will therefore use the rate of $900 for Harry Adams when he works on the Fixed Admin Fee project. This rate will reflect on for example the Planned Resource Costing Report as in the screenshot below.

More complex scenarios

Although PPO implements a very simple rate model as described above, more complex models can also be catered for. Some examples include:

  • A specific rate for a resource on a particular project
  • A rate that is dependent on the resource's job title
  • Rates that are dependent on an effective date (e.g., you want to accurately keep track of rates when resources get their annual increases)

PPO can cater for these by configuring a custom rate entity.  If you have one of these requirements, please contact the PPO support desk who will be happy to assist.

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