Billing rates are used in time sheets when making entries for projects. The billing rate entered determines the hourly rate to charge the customer for regular (standard) time, over-time, and double-time hours. The rate also determines the hourly cost factor to use when calculating labor costs. The cost factor is multiplied by the employees pay rate to determine the cost per hour. Typically, the cost factor would be 1, 1.5, and 2 for regular, over-time, and double-time hours, respectively.
Employees are also assigned a default billing rate. When a time sheet is entered, the billing rate saved for the employee is used as the billing rate but it can be changed to any other rate. Billing rates are only used in time sheet entries but since each project task does require a default billing rate, at least one billing rate must be created. Most Food Service Equipment Dealers will not need to set up anything beyond one default code.
- Rate Code - This is the rate code used to represent the billing rate.
- Billable Rate Standard - The dollar amount for each standard labor hour.
- Over-time - The dollar amount for each over-time labor hour.
- Billable Rate Double-time - The dollar amount for each double-time labor hour.
- Standard Cost - This is the number that the employees pay rate is multiplied by to arrive at the cost per standard hour of labor. Normally this is 1 for standard.
- Over-time Cost - This is the number that the employees pay rate is multiplied by to arrive at the cost per over-time hour of labor. Normally this is 1.5 for over-time.
- Double-time Cost - This is the number that the employees pay rate is multiplied by to arrive at the cost per double-time hour of labor. Normally this is 2 for double-time.