Understand rate calculations in time entry
Determine the rate
In time entry, the
Rates
dropdown contains all of the rate descriptions assigned to the staff member for which time is being entered. The rate used for the time entry transaction is determined by the client, engagement, staff, and activity.note
Engagement
, Activity
, Client
, and Staff
are firm terminology variables. Your firm might refer to these items by different names. To display the default terminology for any screen or field, select Enable Default Terminology
from the Help menu (or use CTRL+SHIFT+H).The following steps are used to determine the rate, in this order.
- The application checks the rates that have been set up for the client’s engagement (selectSetup,Clients, then theEngagementstab).
- If the engagement hasNo Engagement Rateselected, the application checks the activity for the rate.
- IfStaff Rateis selected, the application checks the staff’s rate table for the rate assigned to the engagement. If the staff has that rate assigned, the application uses that rate for the rate calculation. If not, the application checks the activity for the rate.
- IfFixed Rateis selected, the application uses the fixed rate you've set up for the engagement.
- The application checks the rates that have been set up for the activity (selectSetup,Activities, then theMaintab).
- IfNo activity rateis selected when the activity is set up, the application uses the rate you select for the entry. If you don't select a rate for the entry, the application won't allow you to save the record.
- IfStaff rateis selected for the activity, the application checks the staff’s rate table. If the staff has that rate set up, the application uses that rate for the rate. If not, the application uses the rate you select for the entry. If you don't select a rate for the entry, the application won' allow you to save the record.
note
The correct staff rate is determined by comparing the date of the time entry to the effective date of the staff rates table.
Calculate the amount
The
Amount
field is a calculated currency field. If you don't have security permission to view WIP amounts, this field is hidden in time and expense entry.note
Staff with the appropriate security permission can override the amount, if necessary. When an amount is overridden, it shows in red. Amounts that you override can't be recalculated by the application. Amounts can only be changed manually.
The
Amount
field is calculated using the following method:- Multiply the hours by the hourly rate. If you're entering time in minutes, the application converts the time to hours.
- Multiply by the engagement’s markup / markdown factor (selectSetupthenEngagement Templates).
- If the activity used in the transaction is set up for the amount to be rounded, the application rounds the amount to the nearest dollar using standard rounding. If the activity isn't set up to be rounded, the amount will be rounded to the nearest penny using standard rounding.
