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Rate Model

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Rate Model

Use Rate Model to derive date-effective, criteria-driven hourly rates for calculating planned and actual costs for a project or demand.

This centralized and unified mechanism for use across ITBM business applications enables you to define different rates of a specific resource, group, or role for different periods. The labor rates are based on the user attribute only, but the rate model derives the hourly rates based on up to 10 attributes from various pre-defined entities.

You can define the criteria of a rate model by adding attributes from project, demand, project task, user, group, role, or resource plan entities. You can set any one rate model
 as the default rate model that is automatically associated to new projects and demands.

When you associate a rate model to a project or demand, the rate model derives hourly rate for the resource plans and time cards associated with the project.​ The rate from the rate model is derived during resource planning or allocation, and during time card processing.
Note: If a project or demand does not have a rate model associated, the default labor rate is used.

Rate lines

A rate model is a collection of multiple rate lines. A rate line is a unique combination of different criteria values which defines the hourly rate for a resource, group, or role for a specific date range. You can create multiple rate lines for the same set of criteria for different date ranges without any overlapping dates.

Rate model processing

During resource planning or allocation, or time card processing, the rate model associated to the project or demand evaluates the rate lines to find a matching record. The rate of the rate line matching the requested criteria and date range is returned to the request. Rates are returned in the functional currency of the matching rate line.

Figure 1. Rate model processing flow diagram
Flow diagram of rate model processing.

Watch this video to learn about the rate model and its evaluation method to find and return hourly rates to a request.

When a rate is requested, the rate model processes through the following steps.

  1. Finds rate lines that are in the requested date range and discards the remaining rate lines.
  2. Evaluates rate lines resulting from the previous step to find value matching the requested value in the first criteria column and discards the remaining rate lines.
    • First it checks for the exact match to the requested value.

      If the requested value is empty, it checks for rates lines with NULL.

    • If no exact match is found, it checks for the rate line having the value All other (*).

    The evaluation is repeated for the other criteria columns in order of their priority until all the criteria columns are processed or no matching rate line is identified.

  3. Returns the rate from one or more final matching rows.
    1. If a single rate line is found, the corresponding rate is returned.
    2. If multiple rate lines are found, the system determines the number of hours in the request that applies to each rate. For example, the rate requested is for resource allocation from July 1 to July 30. The rate model has one rate from July 1 to July 15 and a different rate from July 16 to July 30 for the same set of criteria. The rate model applies the first rate to the requested hours for July 1–15, and the second rate to the requested hours for July 16–30.
  4. If no rate lines match the requested date range or any of the criteria values, including All other (*), then the default rate card is used.
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