Labor Rates FAQ

FAQ > Labor Rates FAQ

Questions

• What options are available for setting labor rates/pricing?

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What options are available for setting labor rates/pricing?

Employee Hourly Rates
Before charging customers for labor performed by employees, the hourly rate of each employee must be set in accordance with their skills and role. This is set in the New Employee window or on the Employee tab when viewing employee details.
Once you have set a rate for each employee, it is automatically used to calculate charges every time a labor charge is entered and a Labor Item with a set price according to the employee rate is selected.

Fixed Hourly Rates
When you need to charge a fixed hourly rate regardless of which employee has performed the work, you should use Labor Items with the following settings:
Price Source='Fixed Price' and Price='Per Hour'
When using Labor Items with these settings in charges, the hourly rate which was determined in the Item will be used for the charge instead of the hourly rate of the relevant employee.

Fixed Labor Rates - (not hourly)
Use fixed labor rates when you charge for labor on a per-service basis rather than on an hourly basis.
For example, you can have fixed rates for specific services, such as $50 for printer setup, $60 for PC examination, $1,000 for server installation, etc.
In all these cases the amount of time invested is not relevant to the charge rates and the employee rates are ignored.
Use the following settings when you want to charge a fixed price for Labor Items:
Price Source='Fixed Price' and Price='Per Unit'

You can also define custom rates and prices for specific items or employee rates. You can read more about Custom Pricing in the Introduction to Billing, under Custom Pricing.