Cost Rates in Planning

Cost rates are your firm's cost to produce a service. You specify the cost rates and/or billing rates on a plan-by-plan basis.

Choose from the following labor cost rate planning methods:

• From Employee Provisional Rate — Select this option to plan employees and their cost rates. No rate table needs to be specified since all employees and their provisional cost rate will be retrieved from the Employee Info Center.

• From Labor Rate Table — Select this option to specify the cost rates to use for each employee. Many firms use this approach to apply average cost rates to several employees.

• From Labor Category Table — Select this option to apply a single cost rate to all employees who belong to a labor category group. For example, all Project Managers would be costed at the same rate for planning purposes.

• From Labor Code Table — Select this option to specify the labor codes to be used for each employee. Labor codes can have multiple levels. They can classify work on a project, phase, or task in categories, or levels, that you define, such as department, progress, service, or staff level.