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Setting Individual Staff Costs & Creating a Cost Rate Card

Get the most out of fp. with powerful financial reporting. A major component of that, is ensuring that you have entered both the hourly cost for each of your team members, as well as built out a cost rate card. Please review this article to learn more.

Hourly Rates on Staff Pages

Hourly Rates on Staff Pages

Once you have your staff added into your system, and whenever you add a new staff member, you should enter their hourly rate. This can be their hourly wage, or an amount that includes a portion of your overhead. To access this field, hover over Admin and choose Rate and Staff Management > Manage Staff, Staff Rates and Permissions.

Note that access to the Admin area of fp. is permission based. You may not see the area at all, or only see certain sections. Speak to your in-house fp. administrator to get your user permissions changed.  

You will land on your Admin Staff List. Click on the name of a staff person.

Enter this staff persons hourly cost. Click Submit when done. Repeat for each staff person.

While in this screen, you may also wish to review/ add the Billable Hours Target % for each of your staff members.

Where do these values come into play?

  • The Hourly Cost is used as the cost value on an estimate, when a staff person is selected under a service.
  • The Hourly Cost is used as the cost value for all time tracked/ actual time worked.
  • The Hourly Cost is will contribute to the value of the estimated profit field on show on the Profit Analysis Report, if a staff member or role  has been selected on the estimate.

Cost Rate Category

Cost Rate Category

Create a Cost Rate category like you would any other rate category. Hover over Admin and choose Rate and Staff Management > Rate Categories.

You will land on the Manage Rate Categories page. Required fields are marked in blue:

  1. Type in a name for this new rate and optionally add in any description. This description would only be seen by your internal users.
  2. Enter default costs and mark-up. These will apply to any new Expenses and Services that you create after the creation of this Rate Category. You will still be able to change these values, but these defaults will be in place to save you time.
  3. By default, new rates you add will be already marked as Active - meaning you can use them for creating new work immediately. Un-check the Active box as needed.
  4. Tick the box to mark this as your Cost Rate.

Click Save when ready.

The Cost Rate will now show in your list of Rate Categories, and be marked as the Cost Rate.

Although you have set some defaults, you will likely want to make adjustments to these cost values. From the Admin menu choose Rate and Staff Management > Service Rates and Markups

This Cost Rate will likely be a blended rate - such as the combination of all staff costs, divided by the total number of staff. Once you have adjusted any values here as needed, click Save in the bottom right of the page.

Where do these values come into play?

  • The Cost Rate Category is used as the cost value on an Estimate when no staff person is selected under a Service.
  • The Cost Rate Category never relates to Actuals - only with Estimates where no staff person picked.
  • The Cost Rate Category will contribute to the value of the Estimated Profit field on the Profit Analysis Report if NO staff member or role has been selected on the Estimate.

Calculating Cost Rates

Calculating Cost Rates

We have a recommended formula for calculating your cost rate, drawn from our participation with Second Wind.

We welcome your questions or concerns: support@functionpoint.com

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