Custom Bill Formula Maintenance

The Rates and Rules Custom Bill Formula functionality allows you to create and maintain two types of formulas:

Bill Rate Formulas – these are custom built formulas that can be assigned to bill rate rules on bill agreements and to bill items in a standard rates matrix on a job order. They allow bill results to be calculated using a custom bill rate formula instead of system-defined margin/markup formulas.

Rate Matrix Formulas – these are custom built formulas that calculate and display a gross profit value in the rates matrix of a job and can be used if FastTrack's standard formula for gross profit does not reflect the way your business calculates gross profit. These types of formulas are used for display purposes only and do not influence bill results.

Each of these custom bill formula types are described in detail below.

Bill Rate Formulas

Custom bill rate formulas can be created so that bill amounts for invoice items can be calculated using alternative formulas instead of the system-defined margin/markup types that are available on bill rate rules by default.

Using custom bill rate formulas bill amounts for invoice items can be formulated based on any combination of the following:

• pay rate

• pay quantity

• bill oncosts

• fixed values

• formula component (predefined group of bill oncosts or a predefined fixed value)

• other custom bill rate formulas.

For example, consider a scenario where the bill rate needs to be the sum of the following values:

• pay rate

• payroll tax

• superannuation

• 15% margin on pay rate

• -$1.35 invoicing fee discount.

Such bill rates can be defined by creating a custom bill rate formula. Once a custom bill rate formula is created, it can be applied to bill rate rules on bill agreements and to bill items in a standard rates matrix on a job order or standard rates template, which is used to create standard rates job orders, so that bill results can be generated accordingly.

Creating a custom bill rate formula involves the following:

1. Creating the formula components. These can be named, fixed values or groups of bill oncosts that can be used in a custom bill rate formula. This is only necessary if the custom bill rate formula you want to create requires the use of a formula component. 

2. Creating the actual formula.

3. Assigning the formula to bill rate rules on bill agreements.

Rate Matrix Formulas

The agreement or standard rates matrix that is shown on a job order in the Recruitment Manager module displays a gross profit percentage value for each pay and bill item combination. The gross profit percentage is calculated by dividing the gross profit amount by the sales amount then multiplying the result by 100, where the gross profit amount is calculated by subtracting cost (pay amount plus + pay oncost amount) from sales (bill rate).

Custom rate matrix formulas allow an alternative gross profit calculation to be formulated and displayed in the rates matrix of an agreement or standard rates job if your business calculates gross profit differently to the system-defined gross profit formula.

Rate matrix formulas can be created using any combination of the following:

• pay rate

• pay quantity

• bill oncosts

• fixed values

• formula component (predefined group of bill oncosts or a predefined fixed value)

• other custom bill formulas.

 A rate matrix formula must be assigned to a hierarchy level and value, where the hierarchy level can be any level of the agreement hierarchy (country, brand, region, office, parent client, client, cost centre, employment type, payee). The hierarchy level and value are used to match a formula to a job order and, where an active formula does match a job order based on the hierarchy level and value, a separate column is displayed in the rate matrix within the Rates section of the Job Order screen in Recruitment Manager and the following applies to the column:

• the column name is the name of the formula

• the value displayed within the column is the result of applying the corresponding formula

• the column can be hidden or the order within which it is displayed can be altered by a front office user via the Manage Layout function.