Edition: Business, Enterprise

User-level: Director, System Administrator

Previous steps: N/A

This article is designed to explain all the different types of rates and rate groups you will use throughout Synergy.

What is adding or editing rates?

Rate Types

Staff Rates

Cash expense markup

Travel expense items

Inspection rates

Office expense items

Supplier markup

Supplier items

Subcontractor markup

Actions available - all rate types

Mark rates as inactive

Add variations - custom rate changes and surcharges

Add a standard variation

Undo or delete a variation rate change

Project variations

Create and update the rates for staff charge-outs, supplier and subcontractors, inspections, office expense items, staff cash and travel items. Use variations to apply a special discount for the new year for a rate, or a discount for a selected project.

The rates and rate groups can be accessed by going to Settings > Financial > Rates.

Tips:

Rates can be used when estimating budgets when entering expenses, displayed on reports, or listed on the project invoice sent out to your clients. Create staff rates to control the charge-out value for the work your staff perform for projects or set up the markup % or charge-out value for the expense rate types. Cash and travel rate types are used for staff expense reimbursement, office expense items are used to charge time for internal tasks to a project, and supplier and sub-contractor expenses are used to on-charge these expenses on a project with a markup value applied.

Rates can be updated to adjust price changes for each quarter or year. Add a standard variation and enter an effective date for when the new charge-out rate or markup % value will be applied to entered transactions. If using the Business or Enterprise Synergy products then you can also vary the rate by applying discounts/surcharges for selected projects.

Control the standard set of values that work on project invoices is charged out or marked up to for your clients. Use variations to apply special pricing (discounts or surcharges) to selected projects.

Staff rates are used by staff when they are entering timesheets. The rate value is used to define the charge-out value of the transaction for the project stage invoice. The staff rate charge out value is often determined by the market value when bidding on a Project. Rates are recommended to be created for a category of staff or job role. This style of rates is easier to maintain than creating a separate rate for each staff member and having to update the rates each time a staff member leaves the organization.

Each staff record in Synergy is assigned at least one staff rate for use when they enter timesheets. A staff record can be allocated multiple rates if they work on more than one type of job or type of work. i.e. Jill Lockhart has 'architect' and 'senior architect' rates assigned for use in her timesheet entry.

Tips:

Change the name of the rate and any of the existing items (staff transactions or budget entries that use the rate) will be updated to display the new name.

Tip: Update the staff rate values by adding a variation with an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

Below is a table with samples created for a job role in an organization. By creating the rate using a job role, the rate can be used by many staff members in Synergy. Each rate requires a name and a standard hourly charge-out value for project invoices.

Cost shown on the rate is 'standard cost' for the rate. Use standard cost as a benchmarking guide as to what your staff need to average at or value under, for each staff rate to obtain the estimated profit. Each staff member will also have their own cost based on their salary / hourly cost plus overhead.

(Standard Charge Per Unit) / (1+(Target Profit / 100)) = Standard Overhead cost / hour

i.e. If your target profit is 25% and the standard charge per hour is $100 then: $100 / (1+(25/100)) = $80.

This means that staff members that cost you more than $80 per hour should not be assigned to use this rate to continue making a profit for their billable work.

If the staff member costs you more per hour based on their salary details than the standard cost then it would indicate that the staff rate will not be making the estimated 25% profit. The standard overhead per hour cost for completing the task is calculated automatically based on the 'target profit' defined in the financial controls settings.

Tip: Update the staff rate values by adding a variation with an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

This rate is created to control the staff expense markup percentage for staff cash expenses. This markup % is applied to the cash expense when it is allocated against a project to be on-charged to a client. i.e. the staff member is claiming for a flight which costs $500, and the cash expense markup is 10%. The cash expense transaction will be marked up on the project to $550 ($500 expense plus the $50 markup).

Cash expenses are entered via time and expenses and are for variable cost staff expenses like flights, hotels, taxies etc. Staff enter cash expenses when they are claiming the expense for reimbursement, and they can choose which markup rate is applied to project expenses. Learn more about how to enter staff expenses.

There can be many different cash expense markup rates in Synergy. Create a different rate for each type of project work you complete. I.e. On some projects you can markup the cash expense by 10%, another is 15%, and on others, you cannot markup the item which means a 0% markup rate is required. (Note: If you do not markup the expense, then you are not making any profit on that item).

Tips:

After creating your Synergy organization a default cash expense markup rate is created. Edit this rate to have a rate name and markup % that matches your companies requirements.

1) Go to: Settings > Financial > Rates.

2) Select the rate type 'cash expense' in the list. Clicking on the row opens it for edit.

3) Update the rate name to include your markup %. e.g. 'Cash 10%', as 10% is the markup value.
This will update all the existing records using the rate to have the new rate name applied.

4) (Optional) Change the markup % by:

5) Double check that the markup % in the variations tab matches the markup % shown in the name. If not update the name to include the % so staff easily know which rate to use when entering expenses.

6) Save and close.

Tip: Update the cash expense markup rate value by adding a variation. This lets you set up an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

Travel expenses are used via time and expenses for fixed cost expenses e.g. mileage reimbursement per KM's / miles, road tolls, per diem or days away from home allowance, daily accommodation allowance etc. Staff enter travel expense rates when they are claiming fixed expenses for reimbursement.

Travel expense item rates allow you to define the original cost of the item and the charge-out value shown on project invoices. e.g. Mileage has a cost of $0.55 per KM / Mile which is reimbursed to the staff member at this value for work trips. However, when the expense is shown against a project it has the markup applied to be $0.62 per KM / Mile. Marking up the expense for project work ensures that you make a profit on the item.

Tip: The rate 'name' is what staff see when entering expenses, and clients can see on hourly rate invoices. Make sure you put a clear description so that your internal staff and clients know what the expense relates too.

Edit is allowed for the 'name' and charge out '$ value' for the travel item. Update the details of items you create or change the details of the default travel item created with your Synergy organization.

1) Go to: Settings > Financial > Rates.

2) Select a 'travel expense' rate from the list. Clicking on the row opens it for edit.

3) Update the rate name to match what you need to show on an invoice to the client. e.g. Mileage or bridge toll.
This will update all the existing records using the rate to have the new rate name applied.

4) (Optional) Change the charge out '$ value' by:

5) Double check that the charge-out value in the variations tab is correct and that the 'name' of the rate is clear and easy to understand by staff and clients.

6) Save and close.

Tip: Update the travel expense charge-out value by adding a variation. This lets you set up an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

*This feature is available with the Synergy Business or Enterprise products.*

Create an inspection rate to charge the client a flat charge out fee for a site inspection or visit. Multiple types of inspection rates to allow for a different charge out value for CBD / metro visits ($250), country / rural ($400), and interstate ($600) etc. Selected staff members can be approved to use inspection rates within their timesheets. The staff can enter an exact number of hours for the visit, and the client is still charged the flat daily fee for the work.

When creating the rate define what the internal cost is for completing a site visit, and what the client will be charged for the work. The charge-out value includes the profit you want to make for the site visit. Work out the cost for completing the visit (i.e. hours by the staff member, mileage etc.) then add the required profit (i.e. 20% target profit) to create your charge-out fee for the inspection rate.

Create a rate for each of the standard inspection rates that you quote on a proposal. The actual charge out rate can be changed in a project to be discounted or surcharged to the client if required.

e.g. CBD, metro, country / rural, interstate. Consider having an inspection rate for a full day visit, a 1/2 day visit, or for the different type of work completed in a site visit.

Tip: When charging an hourly rate for a site visit, create a staff rate for the task instead of inspection rates. Inspection rates are a flat fee rate. This means if the staff member takes 8 hours or 15 hours to complete the task, the client is still only charged the same flat fee.

Change the inspection rate name, cost value, or charge out value to the client on project invoices. Ensure when updating the name of the rate that it makes sense to clients on project invoices and to staff when entering their timesheets.

1) Go to: Settings > Financial > Rates list.

2) Click on the 'inspection' rate you want to update. Clicking on a row opens it for edit.

3) Update the 'name' of the rate by typing the new name. e.g. Site visit CBD 1 day.
This will update all the existing records using the rate to have the new rate name applied.

4) (Optional) Change the charge out '$ value' or '$ cost' by:

5) Double check that the charge-out value in the variations tab is correct and that the 'name' of the rate is clear and easy to understand by staff and clients.

6) Save and close.

Tip: Update the site inspection charge-out value by adding a variation. This lets you set up an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

Create a list of fixed cost items that you produce in your office for projects. These items can be used to on-charge the cost of this internal task to your client on a project invoice. e.g. Printing black & white, printing color, photocopying, binding, presentation kits, or survey equipment hire per day rate. Try creating a different office expense item rate for each paper size or document type that your office will print, photocopy or bind. e.g. letter, A3, A4, B1, A0 etc.

Tip: If the item is purchased through an external third party, try using supplier expense items instead.

Tip: Update the office expense item charge-out value by adding a variation. This lets you set up an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

Add supplier markup rates to ensure that expenses automatically have a markup applied when they are attached to a project invoice. Supplier expenses are project-related costs like airfares, printing, accommodation, equipment hire, audit reports, inspections, or building supplies.

For example, a supplier provides you with an invoice for $800 for 2 nights accommodation costs for a staff member on a site visit. When the supplier expense is entered the markup selected is 10%. This results in the expense allocated to the project being automatically marked-up by 10% to $880.

Synergy organizations are created with a 10% markup and 0% markup rates. Update these rates to the required standard values for your projects, or add an extra markup as required.

Tip: If the same item is often purchased via a supplier, try using supplier expense items instead to track the changes in cost for the item over time.

Change the name of the supplier markup expense rate, and all the existing transactions that the rate is linked to will also be updated to use the new name. The markup % can also be changed using the method below if no transactions exist using the rate. If transactions already exist use a standard variation to adjust the markup % value and enter a start date for the rate change.

1) Go to: Settings > Financial > Rates.

2) Click the supplier markup expense row to open the edit page.

3)Update the 'name' as required.

4) (Optional) Change the markup % by:

5) Double check that the markup % in the variations tab matches the markup % shown in the name. If not update the name to include the % so staff easily know which rate to use when entering supplier expenses.

6) Save and close.

Tip: Update the supplier markup percentage by adding a variation. This lets you set up an effective date for when the markup % change will begin so that existing transactions are not updated by the rate change.

Add supplier item rates in Synergy to keep track of the cost of frequently purchased items from your suppliers. For example, supplier items might be geotechnical reports, survey field equipment hire, fire safety audit, tree removal, environmental audits, printing plans, fly through DVD’s, prospectus brochures etc.

Adjust the supplier item rate overtime to reflect the change in cost from your supplier using variations. If you purchase the same item from different suppliers then add a separate rate for each supplier.

Tip: When purchasing a one-off item from a supplier, try entering the item as a supplier expense to markup to allocate the expense to the project without having to record all the details about the expense to re-use in the future.

Change the name of the supplier item, and any existing transactions will be updated to also use the new name for the rate. The charge-out value for the item can also be updated if there aren't any transaction existing using the rate. If transactions already exist, then create a standard variation to adjust the rate value with a start date for the rate change.

1) Go to: Settings > Financial > Rates.

2) Click on the 'supplier item' rate you want to update. Clicking on a row opens it for edit.

3) Update the 'name' of the rate by typing the new name. e.g. Geotechnical report, fire safety audit, fly through DVD etc.
This will update all the existing records using the rate to have the new rate name applied.

4) (Optional) Change the charge out '$ value' by:

5) Double check that the charge-out value in the variations tab is correct and that the 'name' of the rate is clear and easy to understand by staff and clients.

6) Add any extra tags required, to make it easier to search for this type of rate.

7) Save and close.

Tip: Update the supplier item charge-out value by adding a variation. This lets you set up an effective date for when the rate change will begin so that existing transactions are not updated by the rate change.

A subcontractor can be contracted by your organization to perform a specific task or provide materials as part of the overall project. Subcontractors are often required for performing tasks outside the scope of services offered by your organization. i.e. building works like painting or tiling, electricians, quantity surveyors, engineering audits, specialized reports etc.

For example, a subcontractor provides you with a quote for $5000, and when the subcontractor expense is entered the markup selected is 10%. This results in the expense allocated to the project being automatically marked-up to $5500.

Synergy organizations are created with a 10% markup and 0% markup rates. Update these rates to the required standard values for your projects, or add extra markup as required.

Tip: If you need a markup % to be different for just one project try adding a variation instead of adding another markup rate.

Change the name of the markup rate, or adjust the markup % for the subcontractor expenses. The name can be adjusted at any time, but remember that past and future items will use the updated rate name. The markup % can only be changed using the method below if no transactions exist (WIP or invoiced). If transactions already exist use a variation to alter the markup % and set the effective date for when the new rate value will start.

1) Go to: Settings > Financial > Rates.

2) Locate the 'subcontractor' rate in the list that you want o change and click the row to open for edit.

3) Update the 'name' field as required.

4) (Optional) Change the markup % by:

5) Double check that the markup % in the variations tab matches the markup % shown in the name. If not update the name to include the % so staff easily know which rate to use when entering subcontractor expenses.

6) Save and close.

Tip: Update the subcontractor markup percentage by adding a variation. This lets you set up an effective date for when the markup % change will begin so that existing transactions are not updated by the rate change.

If you need to create a new rate, you can do that from the rates list.

eg. Adding a new staff rate

Tip: You can't have two rates with the same name; rate names need to be unique. If you are trying to create a rate that already exists, you will get an error. Try looking at the list of inactive rates by clicking on the 'Show inactive rates' option to see if the one you want is already there.

Rates cannot be deleted if they have already been used in a project budget, or allocated to an time or expense transaction. Mark the rate as 'inactive' to stop it appearing in drop down lists for future use.

Mark the rate(s) as 'inactive' by:

1) Go to : Settings > Financial > Rates.

2) The rate is inactive and unavailable for future use. This will not impact any of the transactions or budget rows that are already using this rate.

Tip: When using the 'all' rate statuses filter the inactive rates are shown with a strikeout style applied.

Variations can be added to a rate to adjust the charge-out values or markup percentages from an effective date. The effective date is needed to be selected after the date of the last invoiced transaction that uses the rate. If transactions exist in WIP (non-invoiced transactions) using the rate, then these can be updated to the new rate value using a variation. Transactions prior to the enter effective rate are not recalculated to the new rate value.

Standard variations are applied to adjust the value for all transactions, for any projectt. Use the project variation options to apply a discount or surcharge to a specific project.

Add a standard variation to a rate to apply the revised charge-out values for a new quarter or year. Update the charge-out value for staff rates, or change the markup %, cost $, or charge-out $ values for expenses (dependent on the expense type). Select an effective date that is after the last invoiced transaction using the rate. If WIP (not yet invoiced transactions) exist after the effective date chosen, then the WIP will be updated to use the new rate value.

Undo a rate variation if it has not been used on any invoiced or written-off transactions. Undo/delete the rate and return to the previously used rate value. The row shown with the 'locked' symbol cannot be changed, as the locked row is the original rate value which is required by the system.

Undo a rate change by:

*This feature is available with the Synergy Business or Enterprise products.*

Add a project variation to apply a special discount or surcharge to the selected job or client.

Tip: Project variations are only available with selected Synergy products. *This feature is available with the Synergy Business or Enterprise products.*

After reviewing rates and rate groups you will now be able to create your own and update any existing ones.

Where to next?

Creating a new billable project

What other features does this relate to?

Rate cards in project templates