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Rate Model

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

Using a rate model enables you to define different rates of a specific resource, group, or role for different periods.

Labor rates are based on the user attribute only, but the rate model can derive the hourly rates based on up to 10 attributes from predefined entities such as projects, demands, project tasks, users, groups, roles, and resource plans.

To derive hourly rates from a rate model for the resource plans and time cards of a project or demand, associate the rate model with the project or demand. The rates are then derived from the rate model during resource planning or allocation, and during time card processing.

Note: If a project or demand does not have an associated rate model, 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 that 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 that have different rates for different date ranges, provided the dates do not overlap.

Rate model processing

The rate model associated with a project or demand evaluates the rate lines to find and return the hourly rate that matches the requested criteria.

The rate is returned in the functional currency specified in the matching rate line.

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

The following video describes how to sett up a rate model and the evaluation method to find and return the hourly rate to a request. <span>Video explaining how to work with rate models</span>

When a rate is requested, the rate model uses the following process.

Finds rate lines that are in the requested date range and discards the remaining rate lines.
Evaluates rate lines resulting from the previous step to find values matching the requested value in the first criteria column and discards the remaining rate lines.
If the requested value is empty, it checks for rate lines containing 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 priority until all criteria columns are processed.
Returns the rate if one or more rate lines match the request.
- If a single rate line is found, the corresponding rate is returned.
- If multiple rate lines are found, the system determines the number of hours in the request that applies to each rate.
- For example, say 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.
If no rate lines match the request, then the request uses the default rate card.

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Rate Model

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

Using a rate model enables you to define different rates of a specific resource, group, or role for different periods.

Note: If a project or demand does not have an associated rate model, the default labor rate is used.

Rate lines

Rate model processing

The rate model associated with a project or demand evaluates the rate lines to find and return the hourly rate that matches the requested criteria.

The rate is returned in the functional currency specified in the matching rate line.

The following video describes how to sett up a rate model and the evaluation method to find and return the hourly rate to a request. <span>Video explaining how to work with rate models</span>

When a rate is requested, the rate model uses the following process.

Finds rate lines that are in the requested date range and discards the remaining rate lines.
Evaluates rate lines resulting from the previous step to find values matching the requested value in the first criteria column and discards the remaining rate lines.
If the requested value is empty, it checks for rate lines containing 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 priority until all criteria columns are processed.
Returns the rate if one or more rate lines match the request.
- If a single rate line is found, the corresponding rate is returned.
- If multiple rate lines are found, the system determines the number of hours in the request that applies to each rate.
- For example, say 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.
If no rate lines match the request, then the request uses the default rate card.

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