In Timewax you can work with hourly rates to value hours in financial values. This way you can analyze and compare projects in budgeted, planned and actual amounts. In Timewax we make a distinction in:
- Commercial rates
- Cost price rates
- Intercompany rates
You can set hourly rates at the level of positions, resources and projects. We cover a number of examples to make clear at what time which rate is applied.
Example 1: Activity with different rates per resource
For example, you can choose to set the commercial hourly rates at the level of the position. All resources with that position will then automatically receive the commercial hourly rate of that position.
When a resource is authorized for a project, that rate will be applied by default. Even if you had included a different rate in the budget. This is a suggested rate, because you can always adjust these rates at the activity level. This is illustrated in the figure below.
The resource authorised for the project has a commercial hourly rate of 100 euros and a cost price of 40 euros. After the resource has been authorized for the project, it is manually changed to 90 euros and 35 euros. The hours of the resource are now valued at these hourly rates.
Example 2: Activity with different rates per resource
You can also have different rates on both position and resource level. In the end, the rates at the resource level will always be sufgested on the project. This is illustrated in the figure below.
The commercial hourly rate of 105 euros at the resource level is taken over, as well as the cost price of the resource of 40 euros. The rates at the position level are then ignored. Then, in this example, these rates are adapted at the level of the activity level within the project.
Example 3: Activity with budget rate as a fixed commercial rate
There are also situations in which you do not want to work with hourly rates from the position or resource, but with a fixed hourly rate that has been agreed with the client. In that case, you can activate the check mark "Budget rate is fixed commercial rate" on the activity. Nothing will then be done with the hourly rates at the position and resource level. See illustration below.
This only applies to the commercial hourly rate. In the example you can see that the cost price is taken over, in this case from the resource. This is because you never make an agreement with clients about the cost price.
You can activate this option per activity within a project. This allows you to set a fixed commercial hourly rate for some activities, while other activities use the hourly rate of the position, resource or hourly rate in which you change it yourself.
See also this video tutorial: