Job Labor Pricing Schedule

Overview:

Pricing Schedules are a package of rules that can be defined at a standard/customer level or job level, that tells PENTA how it should price billable costs. The Labor Pricing Schedule defines rules for marking up costs that originated in PENTA's payroll module. This includes the following:

• Direct Labor Hours (T&M)
• Direct Labor Cost (cost plus)
• Reimbursements (cost plus)
• Burden/Overhead (cost plus)

Benefits:

• Ability to setup/define job specific pricing rules for automated cost plus and/or T&M project billings
• System automatically calculates mark ups/prices based on the predefined rules

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.
    • • Project – PENTA uses this pricing schedule for labor on this project.
    • Create a job specific schedule on 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
    1. Standard schedule

    During automated cost plus invoicing, PENTA tries to price all labor costs that have not been previously billed. 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 then 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:

• Project Management > Owner Contract Information > Cost Plus/T & M Pricing Schedules > Job Labor Pricing Schedule

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