This document demonstrates how to set up rates for T&M (Time and Materials) billing and how to apply those rates to a job. The optional process of adding Extra Payroll Groups to those rates is also demonstrated and explained.
Go to Job Contract Manager > Company Config > Setup > Rate Maintenance (Figure 1).
Click Add at the bottom of the screen (Figure 1).
Figure 1: Click to Add a Rate Type
Alternately, it’s also possible to use the Copy function on existing rate table if there were only a few changes to previously created rates needed, rather than starting from scratch. If desired, highlight the appropriate Rate Type, and click Copy (Figure 2).
Figure 2: Copy Function
Enter in a name for the Rate Type (Figure 3).
Choose the correct transactions methods in the drop-downs (Figure 3).
Typically, users will set the Payroll Transactions from drop-down to PRCOST- Payroll. This option allows for more advanced rate setup for payroll. The Payroll Rates and Extra Payroll Groups tabs will be available inside of the rate type.
Alternately, if CTPR- Cost Transactions is selected, it will only allow for setting rates/multipliers for each cost code.
For Job Status Timesheet Transactions from, select the source for Job Status Timesheet transactions. CTJC-Cost Transactions will be selected for this example, which will only allow for setting rates/multipliers for each cost code.
Alternately, if JCTS-Job Status Timesheets is selected, the Job Status Timesheet Rates tab will be available inside of the rate type, which will enable the user to set more detailed rates and multipliers.
For Equipment Transactions from, select the source for Equipment transactions. CTJC-Cost Transactions will be selected for this example, which will only allow for setting rates/multipliers for each cost code.
Alternately, if PCINV-Equipment Invoices is selected, the Equipment Rates tab will be available inside of the rate type, which will enable the user to set more detailed rates and multipliers.
Click the floppy disk to Save (Figure 3).
Figure 3: Enter Rate Type Information, Click Save
Optionally, highlight the appropriate Rate Type, select Populate Cost Type Rates from the bottom taskbar, and click the arrow to “Apply Action” (Figure 4). This will populate a range of cost types, so they don’t have to be added manually. Other functions can be ran using the drop-down including:
Populate Payroll Rates – This will generate an error message if any of the selected rate types have the Payroll Transactions from field set to CTPR-Cost Transactions. It prompts for a range of labor codes and creates Payroll Rate records from the labor codes.
Populate Job Status Timesheet Rates - This will generate an error message if any of the selected rate types have the Job Status Timesheet Transactions from field set to CTJC-Cost Transactions. It prompts for a range of timesheet activity codes and creates JC Timesheet rate records from the employee grades or activity codes.
Populate Equipment Rates - This will generate an error message if any of the selected rate types have the Equipment Transactions from field set to CTPC-Cost Transactions. It prompts for a range of asset group codes and creates Equipment rate records from the assets or asset groups.
Figure 4: Populate Cost Type Rates, Click Arrow to “Apply Action”
At the next screen, in the Main tab, enter in any appropriate filters and the check the Effective Date (Figure 5).
Then, click Next in the bottom, right corner of the screen (Figure 5).
Figure 5: Click Next
Next, click the hyperlink under Rate Type (Figure 6).
Figure 6: Click Rate Type Hyperlink
On the Cost Type Rates tab, click Add at the bottom of the screen (Figure 7).
Figure 7: Click Add in Cost Type Rates Tab
If the user performed the Populate Cost Type Rates function in step #6, the screen should look like Figure 8.
Figure 8: Cost Type Rates Tab (if Populate Cost Type Rates was performed)
Then, the user can either click the Open folder in each Cost Type to add multipliers for (Figure 9) – and continue onto step 9.
OR
Click Bulk, then Open to edit all Cost Types in an Excel spreadsheet (Figure 9).
Figure 9: Open Individual Cost Type or Bulk Open Cost Types
The very first field here, Cost Type, will allow for setting rates for all Standard Cost Types. Leaving this field blank will set rates for every code (Figure 10).
Make sure to include the appropriate Effective Date for these rates, which will pre-populate as today, but can be changed (Figure 10).
Set a Multiplier for each cost category in the Multiplier by Category section – the example shown here is set to bill Material, Equipment, Subcontract invoices, and Other costs to the customer at 125% of the cost to the job. The Tax Multiplier here is set to 1.00, which means that it will bill to the customer at 100% of the cost to the job, with no mark-up (Figure 10).
Note: This is a Multiplier, and as such, anything left at 0.00 will bill at $0.
The Labor column in the Multiplier by Category section is left blank here (Figure 10) because labor rates will be set on another tab because in step 5, Payroll Transactions from was set to PRCOST-Payroll. If Payroll Transactions from was set to CTPR-Cost Transactions instead, the Labor column could be used here.
Optionally, enter in rates and multipliers for Job Timesheets and Equipment (Figure 10).
In the Accounts Payable section, a separate multiplier for Freight charges can be set (Figure 10) – or this can be set to the same multiplier as the Material, in which case the full invoice amount will be marked up the same way, regardless of how much is material and how much is freight.
Click the floppy disk to Save (Figure 10).
Figure 10: Enter in Cost Type Rate Information, Click Save
To set rates for a specific cost type, repeat steps #8-15 and use the Lookup (…) to select the appropriate Standard Cost Type (Figure 11).
For Cost Type Rates, lines with more detailed information will take precedent.
For this example, different rates/multipliers were set specifically for the EQ-Operated cost type (Figure 11). Therefore, those rates will apply for EQ-Operated, and then every other cost type will use the rates and multipliers for the blank cost type that was set up.
Figure 11: EQ-Operated Cost Type Line Added
Optionally, the Overrides tab will allow the user to override the cost type on a job-by-job/cost code-by-cost code basis. This might be used if the user wanted a specific job’s cost code or cost codes to have different rates/multipliers than the cost type rate set up in the Cost Type Rates tab.
Next, set up the payroll rates in the Payroll Rates tab (Figure 12).
Click Add at the bottom of the page (Figure 12).
Figure 12: Click Add in Payroll Rates Tab
This process will work similarly to setting the Cost Type Rates.
All fields are optional, and the Lookup (…) can be used for each (Figure 13):
Trade
Trade codes are set up in Payroll > Global Setup > Trades.
Union
Union codes are set up in Payroll > Global Setup > Unions.
Skill
Skill levels are set up in Payroll > Global Setup > Skill Levels.
Earnings Category
Earnings categories must be established in Payroll > Global Setup > US Specifics > Earning Categories before they can be used here.
Employee
Employees are set up in Payroll > Employee Maintenance.
The Effective Date will pre-populate as today, but can be changed (Figure 13).
For each row, the Rate Columns can be populated to appropriate hourly dollar amounts for regular, overtime, and double time pay. Additionally, there are also Multiplier columns, which would multiply the actual payroll hourly rates set on the Earnings Category in the Payroll module.
The Multipliers in this example are set to zero - which means Payroll hourly rate times zero, plus the rate set in the Rate Column. If the Multiplier was set to 1.00 and Rate to $40.00 – then this would bill at 100% of the payroll cost actually paid, plus $40.00 per hour.
Enter in the appropriate Regular, Overtime, and Double Time rates and multipliers (Figure 13).
Click the floppy disk to Save each payroll rate (Figure 13).
Figure 13: Enter in Payroll Rate Information, Click Save
Just like for Cost Rate Types, the more detailed information provided in each Payroll Rate row, the more priority that row would be given when looking at which rate to use.
For example, the following rates are given in order of increasing priority (Figure 14):
Rates set for HVAC Tech Trade only
Rates set for HVAC Tech Trade who is also an Apprentice Second Year Skill
Rates set for HVAC Tech Trade who is also an Apprentice Second Year Skill and who is also in Union 04-551.
Figure 14: Payroll Rate Priorities Example
Here are several more examples to demonstrate Payroll Rates, for reference:
“Any timecard where a Laborer has Earnings Category BO (Bonus) will bill at $0. Any timecards where a Laborer has any Earnings Category other than Bonus will bill at $25 per hour for regular time, $35.50 per hour for overtime, and $50 per hour for Double Time” (Figure 15).
Figure 15: Labor vs. Bonus Laborer
“Any HVAC Tech makes $40 per hour, until January 1st, when the rate will change to $42 per hour” (Figure 16). A new Payroll Rate would need to be entered with the Effective Date.
Figure 16: Payroll Rate to Change via Effective Date
Exception by Employee: “John Doe bills out at $30 per hour for regular time and $45 per hour for overtime, regardless of what trade he was working” (Figure 17).
Figure 17: Exception by Employee – John Doe
Optionally, as another hypothetical example, a blank Payroll Rates line could be added to capture all other possible items, if that kind of rate setup was decided in the job contract.
The Used In tab shows which jobs use the specific rate displayed. Another Rate is being shown because this tab would be empty for a Rate that was just created (Figure 18).
Figure 18: Used In Tab
Optionally, the Extra Payroll Groups tab allows the user to set up and maintain extra payroll groups for the Rate Type (Figure 19).
Click Add at the bottom of the page (Figure 19).
Figure 19: Extra Payroll Groups Tab, Click Add
Enter in a Description (Figure 20).
Select the appropriate Extra Payroll Component(s) to include in each group. To select multiple components at the same time, click each component while pressing the “Ctrl” button on the keyboard (Figure 20).
Extra Payroll Components are the Employer Payroll Expenses that can be incurred when paying an employee, in addition to wages. The Extra Payroll Group/Components let users bill these extra costs along with wages based on some multiplier.
Note: Extra Payroll Components are hard-coded in COINS and there is no file maintenance for them.
Then, click the right-facing triangle to “Add” (Figure 20).
Figure 20: Adding an Extra Payroll Group
Alternately, click the double right-facing triangle below the “Add” icon to “Add All” of the Extra Payroll Components.
Then, click the floppy disk to Save (Figure 21).
Figure 21: Click Save
Add as many additional Extra Payroll Groups as desired (Figure 22).
Figure 22: Additional Extra Payroll Groups Added
Go back to the Payroll Rates tab (Figure 23).
The Extra Payroll Groups that were added are now seen as additional columns under the Extra Multiplier heading (Figure 23).
Payroll Rate multiplier values can now be entered in the new Extra Payroll Group columns.
Figure 23: Extra Payroll Groups Seen in Payroll Rates Tab
Next, confirm that the job to use T&M billing for is set up to use cost-based billing. For information on how to set up a job from scratch, see the document for “Job Entry.”
Go to Job Status > Jobs (Figure 24).
Click on the hyperlink of the appropriate job (Figure 24).
Figure 24: Click into Hyperlink of Appropriate Job
Click into the Job Details tab and expand the Commercial Options section (Figure 25).
In Commercial Options, the following fields should be set as (Figure 25):
Job Contract Manager Options: Billing and Change Mgmt
Type: STD-Standard (LS,TM, & UP)
Rate Type: (the appropriate rate table appropriate for the job that was set up earlier in this document.) For this example, the user needs to update the Rate Type.
To update the Rate Type, click Open in the bottom, left corner of the screen (Figure 25).
Figure 25: Commercial Options, Click Open to Update Rate Type
Update the Rate Type. Use the Lookup (…) if desired. The Rate Type created earlier in this document will now be an option to choose from (Figure 26).
Then, click Save in the bottom, right corner of the page (Figure 26).
Figure 26: Update Rate Type, Click Save
