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Setting Individual Staff Costs & Creating a Cost Rate Card (incls calc)

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 Details Pages

Hourly Rates on Staff Details 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.

Click on the name of a staff person.

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

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 can now create a cost rate card:

1) Give the rate a name.

2) Enter defaults for internal services, external expenses and internal expenses.

3) Tick the box to mark this as your Cost Rate.

4) Click Save when ready.

The Cost Rate will now show in your list of Rate Categories.

Although you have set some defaults, you will likely want to make adjustments to these cost values. Again hover over ADMIN, 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 values entered, click Save.

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 a staff member has not been selected on the estimate.

Calculating a Cost Rate

Calculating a Cost Rate

We have a recommended formula for calculating your cost rate, that we learned through our participation with Second Wind.

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

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