Changing Base Rates and Billing Rates Retrospectively

If staff or task base and billing rates have been entered incorrectly, or at the wrong moment in time, it may become necessary to change these rates. The question then arises – what happens to the base and billing rates associated with time sheets that have been written in the past? Do the changes apply retrospectively?

Base rates

Staff base rates are used to calculate the actual cost of time, on a job currently being worked on, as a staff member records each time sheet entry.

The staff base rate gets 'locked in' at the time the time sheet is written, and changes to the staff base rate on the staff member's record will not change rates or values retrospectively. Changes to staff base rates will only affect new time sheets written after the change to those rates has been saved.

Adjusting a small number of time sheets

If you have a relatively small number of time sheets to adjust, you will have to delete then reinstate each time sheet in order to update it to use the new base rate. This method will result in the correct profitability being reported for the job, as shown in the Job financial summary report, and correct reporting on the cost of the time at the staff level, if such reporting is required.

Adjusting a large number of time sheets

If you have a large number of time sheets to adjust, you may prefer to adjust the value of the actual cost of all time sheets entered to date, on each job, with a single summary adjustment.

To make a single, summary, adjustment on a job:

  1. Calculate the difference between the actual cost of time as recorded, and the actual cost of time as it should have been recorded at the new rate.

    For example, to make an adjustment for a specific job, you might build a Time report in the Report Builder in order to calculate how many hours had been entered for the job at the old rate. This might be a total of 10 hours at $50/hour (=$500). Then calculate the total cost at the new rate, say, 10 hours at $60/hour (=$600). In this example, the Unit Cost you would enter in Step 3 is $600 – $500 = $100.

  2. Create a new cost item called Cost of Time Adjustment (or similar) on the job.
  3. In the Unit Cost field, enter the value you calculated in Step 1.
  4. In the Unit Price field, enter 0 (zero).
  5. Flag the cost as non-billable and save the cost item.

This will result in the correct profitability being reported for the job, as shown in the Job financial summary report. However, this method will not result in the correct reporting on the cost of the time at the staff level, if such reporting is required.

Billable rates

Staff or task billable rates (depending on which setting you have chosen for the Task Invoice RateThe Task Invoice Rate is a key configuration setting (set in Business > Settings > Organisation Settings > Job (Section) ). If it is set to Staff Billable, WorkflowMax will use Staff billing when calculating the cost of time spent working on a task. If it is set to Task Billable, WorkflowMax will use Task billing when calculating the cost of time spent working on a task. in Business > Settings > Organisation Settings > (Job Section) ) are used to calculate the billable value of time, on a job currently being worked on, as a staff member records each time sheet entry.

The billable rate does not get locked in at the time the time sheet is written (as is the case with the staff base rate). But the rate does gets locked in when the time is invoiced out.

If the time has not been invoiced out…

If the time has not yet been invoiced out, then you can go to the staff (or task) record and change the billable rate to the new rate. If you do this you will be prompted to Apply current billable rate of $xxx.00 up to and including (select a date) (see Historic billing rates). In this way you can choose to invoice out some or all of the unbilled time at the new rate.

If the time has been invoiced out…

If the time has been invoiced out, then the billable rate will be locked-in as at the time of invoicing, and the only way to correct this is to cancel the invoice.

If the invoice has been approved and is awaiting payment, it can be cancelled. If the invoice has been paid by the client, it cannot be cancelled.

If you integrate with Xero, cancelling an invoice in WorkflowMax will automatically void the invoice in Xero, if no payment has been applied against that invoice.

Cancelling an invoice will remove the invoice from the Awaiting Payment tab of the Invoice Manager in WorkflowMax. An audit history will be created on the Financial Tab of the Job, in the Invoices section, showing that the invoice was marked as cancelled.

When you cancel an invoice, the time and costs are released back onto the job and will be available to invoice again, at the new billing rate, once one has been set up.

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