Project Management

Get Involved. Join the Conversation.

Topic

    Thirupalu Annamreddy
    To setup labor ceiling rate to invoice the customer in...
    Topic posted September 10, 2018 by Thirupalu Annamreddy 
    27 Views
    Title:
    To setup labor ceiling rate to invoice the customer in project billing
    Summary:
    For Govt contracts, our customer uses ceiling rates to bill the customer in combination with burden schedule at contract bill plan/revenue plan.
    Content:

    Below is the scenario as per business requirement.

    1. For Govt Contracts, Business has agreed upon ceiling billing rates say 100$. 
    2. So on cost transaction:1->quantity:10 hours and cost rate:110$ and raw cost amount:1100$. 
    3. At contract they use Rate based bill plan and rate based revenue plan with Burden schedules say burden cost code Fringe:0.05(burden multiplier) . 
    Note:Hence we could not define person rate overrides at contract bill plan/revenue plan UI.
    4. Now when we generate invoice, invoice amount will be=(1100*0.05)+1100=1155$. 
    But Business expectation=(10*100*0.05)+(10*100)=1050$(To consider ceiling rate). 
    If another labor transaction:2 where qty:8 and cost rate:80$->raw cost amount:640$
    Invoice amount should be (640*0.05)+640=672$

    Note:Only labor cost transactions where cost rate>ceiling bill rate ,we need bill/recognize revenue based on ceiling bill rate only.

    Could you please suggest how can we achieve this functionality?

    Version:
    R13 18A