One area of functionality that has made TimeControl so popular is the level of flexibility in the Rate structure. It’s a necessary element for TimeControl because of the multi-functional nature of the product and how costs might be thought of one way for one part of the company, (for example Billing) and very differently by another part of the company (for example, Payroll). The options for how rates are selected and then calculated are extensive and designed to fulfill as many business scenarios as possible. Let’s look at just a few of these options:
Rate Code Types
TimeControl Rate codes are created as either Global, Resource, Individual or Non-Labor types. For labor resources a Global-type could appear for any employee’s timesheet, a Resource-type would appear only when that employee is part of the resource referenced in the Resource code and an Individual-type could appear only for the employee specified. Already that’s a lot of options!
Rate Codes per line item
TimeControl allows an unlimited number of rates per employee and per timesheet. You are even allowed to have the same charge code entered more than once with each line having a different rate code. So this can easily accommodate an employee who might fulfill one function in the morning on a task and a different function to be billed at a different rate in the afternoon.
Some organizations want a default project rate for each employee. While the rate code might look like the same selection to the employee when filling in their timesheet, it could still be an individualized rate code definition because you can have more than one rate code with the same name in the Rate Table so long as it is unique by being associated to a unique employee or resource code. Default Project Rates can be defined in the Project Table and can be constrained in the Employee Record in the Filter section.
But we don’t want to see all those rates
In each employee record, filters can be used to define which rates should appear and for which conditions. This can define showing only certain rates at certain times. The technique can be used to easily define rates that change at a certain time of the year or to define different rates being available for different projects or charges or other data conditions.
Calculating Rate Values
So far we’ve only talked about how you can define many rates and how to select them but what about how rate values are calculated. For labor rates, each rate code can have multiple values. Up to 9 values per rate are available by default. This allows different values for different purposes to be used. Let’s say that we define Value 1 for Internal Actual Cost. Then we expect to pay that person that amount per hour completed. Then we can use Value 2 for External Billing Cost. That would allow us to calculate an invoice amount for that same value very differently. We can use this technique to also handle things like “unbillable time” where the Billing Cost is zero but the Internal Cost is still paid for. We can use the same techniques for Banked Overtime where the internal cost is zero but the billing cost is still invoiced.
That’s just 2 of 9 values. Perhaps you might want to define a 3rd value as an Average Project Cost to match the cost capabilities of your project system so that costs sent by TimeControl to the project system match the values that were used for planning.
Accruals and more…
We haven’t even talked about how the Accruals Module can take timesheet data it encounters and assesses values to each employee for that time. In this way, overall overtime or banked time or earned vacation time can be calculated and stored. There are also options in TimeControl Industrial to cost materials consumed, equipment used and production accomplished. TimeControl Industrial’s rate selections also supports extended rates which look through combinations of timesheet line fields to select the right rate for you.
There are so many options on how to create your own Rate definitions that we’ve made a white paper on the subject called: Creating your Rate structure in TimeControl. The same information is available in the Appendices of the TimeControl Reference Guide. You’ll find other resources on designing your TimeControl environment to suit your needs in the Resources area of the TimeControl website.