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How does PPO calculate resource rates?

PPO allows a resource rate ($/hour) to be associated with an employee 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.

Employee rates

On the employee record, you will see that PPO caters for three rates to be associated with an employee. You can change the caption of these as appropriate 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 record, you will see a Rate to Use field which refers to the three rates that are defined on the employee record as discussed above. In the screen shot 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 employee record, the values available on the project entity will be adjusted accordingly.

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 an employee on a particular project
  • A rate that is dependent on the employee's job title
  • Rates that are dependent on an effective date (e.g. you want to accurately keep track of rates when employees 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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