Standard Labor Pricing Schedule

Overview:

The Standard Labor Pricing Schedule window allows you to create, maintain, and delete a set of rules that PENTA uses to bill labor on cost plus and time & material jobs. A schedule consists of a sequenced list of rules that PENTA uses to convert costs to an invoice price. You can have multiple sets of rules on a schedule, one set for each effective date. PENTA uses these rules to:

• Calculate invoice amounts for job labor.

• Calculate earned revenue for unbilled job labor during revenue recognition.

Benefits:

• Define rules to allow the system to automatically calculate markup on costs for billing and revenue
• Assign pricing schedules at the customer or customer location level which can automatically default to new jobs during job setup
• Utilizing standard schedules avoids the need to set up a new schedule for each new project

Roles:

• Billing Clerk

Additional Content

• Setup Tips:

  • Labor pricing rules can be complex. You can use standard schedules to simplify creating these rules in two ways:

    • Assign a standard schedule to any of the following:
    • • Customer – All jobs for this customer default to this pricing schedule.
    • • Job – PENTA uses this pricing schedule for labor on this project.
    • Create a job specific schedule within the Job Labor Pricing Schedule window by copying a standard schedule and modifying it.

    If a job has multiple pricing schedules, PENTA uses the first schedule that matches a labor transaction when calculating invoice amounts for the job. PENTA uses the following hierarchy when searching for a schedule:

    1. Job specific
    2. Standard schedule

    During automated cost plus invoicing, PENTA tries to price all uninvoiced labor costs. PENTA determines which Labor Pay Rate/Markup to use by evaluating each rule in the assigned pricing schedule in ascending Sequence # order. PENTA uses the first rule that matches the cost transaction. A match occurs when one of the following is the same for both the cost and the rule:

    • Employee Id
    • Cost Type Code
    • Costcode
    • Payroll Class
    • Pay Rate

    Consider the following when assigning sequence numbers:

    • To ensure PENTA selects the appropriate rates and markups, assign the lowest Sequence #s to the most specific pricing rule (e.g., employee specific rates should have a lower sequence number than rates by Cost Type).
    • Assign sequence numbers with large intervals, so that you have sequence numbers available for future rules. For example, use the sequence 100, 200, 300, and so on.

    Note: If a Job has no pricing schedule (standard or job specific), PENTA first looks to the line item job for a corresponding pricing schedule in order to determine the Job’s cost. If the line item job has no standard or job specific pricing schedule, PENTA looks to the invoice job for a corresponding pricing schedule to determine the job’s cost.

Location:

• Billing & Accounts Receivable > Setup > Standard Pricing Schedules > Standard Labor Pricing Schedule

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