This section describes how Projector determines how to set each of the typical rates and revenue types by analyzing rate cards, discounts, and overrides. It discusses how organizations can use Projector to manage rates as well as the process that Projector uses to determine the rate for a particular project, role, task coderate type, and date combination for each of the rate/revenue types:
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- Alter a Project's Contract Rates – Once a project is created and inherits a default rate card and discount from a client or cost center, the contract rate structure can be altered to reflect the specific agreement with the client. The rate cards and discounts used can be modeled to change over time on a particular project. This is often used if the organization has negotiated up front a discount for a specific introductory period or if the client has been notified that rates are changing at a certain date and has agreed to adopt the new rate card at that date.
- Base Role Rates on Specific Title – This type of override entails explicitly defining the title that should be used to calculate the contract rate (as opposed to using the resource's actual title). Basing contract rates on a specific title is often useful for cases in which a project was scoped and sold to a client based on resources with a particular title, but those resources are not actually available for the work. This is also useful if a resource gets promoted during the course of a project, but the organization wishes to continue to bill at the rate associated with the resource's old title for existing projects.
- Override Title-Based Role Rates – This override involves explicitly defining an hourly rate for that role over a defined time period. It is often used in situations where the organization is offering special introductory pricing for a new service and wishes to define a flat hourly rate for resources during that period.
- Override Role-Based Rates – This override involves defining a rate or discount/premium for a task coderate type.
Contract rates are similar to standard rates in that most organizations will want to manage contract rates at the highest levels in the model as possible and take advantage of Projector's linking and inheritance capabilities to reduce administration overhead.
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After a project is created, if Projector needs to find the contract rate for an individual project, role, taskcode, and date combination, it will first look at the task code rate type to see if there are an explicit rate overrides or discounts for that task coderate type. If not then it will look at the role to see if there are any explicit rate overrides for that date and use it if possible. If a rate override doesn't exist, it looks to see if there is a Base Rate on Specific Title override (on the Rates tab of the Role Editor) and will use the title specified there if present. If there is no title override, Projector finds the resource's actual title on that date and uses it to determine the proper rate using the contract rate structure associated with the project.
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The system revenue recognized is stored at the time card level, which permits allocation of system revenue down to the project, task coderate type, and resource level. For engagements with time and materials time contract terms there is no dynamic calculation of system revenue. System revenue and sytem revenue recognized are reported as the revenue on the time cards, and are always the same. Furthermore system revenue is usually identical to the billing adjusted revenue, and is created automatically as time cards are approved. It is possible to perform revenue recognition on time and materials projects (which can create differences between billing adjuste and system revenue), but there are few reasons to do so.
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