About billing rate tablesA billing rate table is a rate structure that defines billing calculations. The tables you set up specify the rates at which labor, expense, or consultants are billed. For you to make a profit, your billing rates must include the cost of overhead and a profit markup. The billing arrangement with your client may specify a set billing rate that has these costs and profit already factored in, or you may mark up your actual cost by specified percents. With Ajera, you can set up billing rate tables to accomplish both of these types of rate calculations. You can create as many billing rate tables as you need to reflect billing arrangements with clients on particular projects. If your rate changes mid-project, you can specify multiple date ranges for the same table. In the billing rate table, you can set overall markups or set up billing rates by:
Rates can be calculated as a cost markup, a standard billing rate, or a pass through cost.You can also override your actual cost rate and employee type for billing purposes or set a maximum cost. If you bill overtime or other premium hours, you can set up a premium markup percent. You can set up a rate table to calculate billing rates using:
MarkupsFor your company to make an overall profit, you must increase your company's various costs when you bill the client. In Ajera, you begin building your rate table by defining the general way you want to increase, or mark up, all costs on a project. For example, you may want to mark up all direct labor costs by 30% to cover DPE, 150% to cover overhead cost, and an additional 10% for profit. In addition, you can identify exceptions to these general markups for a specific cost. For example, a principal’s direct personnel expense and overhead cost may be higher than your company average so you may want to mark up those hours by 40% for DPE, 160% for overhead, and 10% for profit.
See also Setting up a billing rate table |
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