COSTPOINT BILLING SERIES - Deltek Billing Series ... • The PLC is the foundational structural element for the proper functioning of the Time and Material billing. • It

Costpoint Billing Series

Billing Procedures Part 2

Participant Guide

© 2018 Deltek, Inc. All Rights Reserved. PG 1

Costpoint Billing SeriesBilling Procedures Part 2

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© April 2018 Deltek, Inc. All rights reserved.All referenced trademarks are the property of their respective owners.

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CHANGE YOURSTATUS

During the class,you can changeyour status toprovide feedbackto the presenterand otherparticipants.

Adobe Connect Basics

USE THE CHATBOX

You can use the chatbox to ask questionswithout disturbingthe discussion. Youcan use this with thechange status actionto effectively call thepresenter'sattention.

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Course Learning Objectives

By the end of this course, you should be able to:

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• Identify the following:• Purpose of a work force in controlling laborcharges against any type of project

• Difference between Employee Work Forceand Vendor Work Force screens

• Time and Material Formulas

• Use of Rate Type codes

• Function of the Rate Sequence table

• Role of the Load Labor Rates process inproperly updating a labor transaction recordthat initially resides in Open Billing Detail

• Demonstrate the steps to:• Setup the Project Work Force

• Create a T&M format and supportingschedule

• Setup PLCs and linking PLCs and PLC Rates toprojects

• Process a T&M bill


Project Work Force

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Work Force Definition

A Top Level Work Force requires that the employees and vendors be designated at thehighest level of the project. Accordingly, any lower level project node that allows charging isopen to that work force.

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A collection of employees and/or vendors (subcontractors) who are authorized tocharge against a project.

Work Force


Work Force Feature

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• Enable the Project Work Force Required checkbox• If the work force can be designated at the highest level of the project for all

lower level elements, enable the Use Top Level Work Force checkbox.

Projects > Project Setup > Project Master > Manage Project User Flow

Work Force and Project Labor Category

PLC Project Labor Category• Represents a classification code defining the type of work that an employee isperforming on a specific job

• An alphanumeric code consisting of up to six (6) characters• This code is more detailed than the General Labor Category which has a strongercorrelation to a Human Resources classification

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Project Employee Work Force

A Project Employee Work Force is the set up of employees to the Employee Work Force.

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Projects > Project Setup > Project Labor > Manage Employee Work Force

Project Employee Work Force: Assign PLC to Employee Work Force

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Projects > Project Setup > Project Labor > Manage Employee Work Force > Assign PLC to EmployeeWork Force subtask

The Manage EmployeeWork Force screen canalso be used todesignate specific PLCsfor anyone who doeswork on the project.


Project Vendor Work ForceA Project Vendor Work Force is similar in set up to that of the Employee Work Force.

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The list of valid records in thistable is derived from the

Accounts Payable Vendor table

Project Vendor Work Force: Assign PLC to Vendor Work Force

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Projects > Project Setup > Project Labor > Manage Employee Work Force > Assign PLC to Vendor WorkForce subtask


Demonstration

Manage Employee Workforce

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Employee Specific Rates

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Projects > Project Setup > Project Labor > Link PLC Rates to Employee/Vendor

Enter the Project ID,Employee/Vendor ID, andthe appropriate Project

Labor Category

Specify the rate typecode

Enter the rate

Specify the validstarting and ending

date range


Work Force Transactions

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Work Force transactionvalidation occurs in thetimesheet module inaddition to the Laborsub task of AccountsPayable vouchers.

Accounting > Accounts Payable > Voucher Processing > Manage Accounts Payable Vouchers

Any questions?

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Quick Review

Project WorkforceTrue or False?1. Work Force functionality is mandatory for time & material based projects.2. Work Force functionality can work without making an association between an

employee and a Project Labor Category.3. A project with three lower level project nodes can be configured to have three

separate and unique work forces.

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Time and Material Billing

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Time and Material Billing

• Includes a diverse collection of formulas• Encompasses all billing methodologies that require labor (time) to bebilled out on an hourly basis

• Billing rate may be set based on a rate schedule or correlated to anemployee’s hourly rate

• Other costs such as travel expenses may be billed to a client or amarkup percentage could be applied

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Time and Material FormulasThere are nine (9) T&M based formulas in Costpoint— six (6) are loaded labor and three(3) are multiplier based.

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Labor Cost TimesMultiplier Plus Non

Labor TimesMultiplier (Cost)

Rate Schedule TimesMultiplier Plus NonLabor Cost Times

Multiplier

Labor Cost TimesMultiplier Plus Non

Labor TimesMultiplier (Hours)

Multipliers apply a factor againstan employee’s individual pay rate.

Loaded labor uses a billing rate that is alreadymarked up.

Loaded Labor Rate

Loaded Labor Ratewith Fee Plus NonLabor with Burden

with Fee

Loaded Labor PlusNon Labor withBurden with Fee

Loaded Labor RatePlus Cost Incurred onNon Labor (T&M)

Loaded Labor PlusNon Labor PlusBurden on Non

Labor

Loaded Labor Ratewith Burden with FeePlus Non Labor withBurden with Fee


Loaded Labor Formulas

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Non labor (Materials)Labor (Time)

FORMULA @Bill Rate +Fee +Burden @Cost +Fee +Burden

Loaded Labor Rate

Loaded Labor Rate + Cost Incurred onNon Labor (T&M)Loaded Labor + Burden on Non Labor

Loaded Labor + Non Labor with Burdenwith FeeLoaded Labor Rate with Fee + NonLabor with Burden with Fee

Loaded Labor Rate with Burden with Fee+ Non Labor with Burden with Fee

Time and Material Billing Format

The first step in the Time and Material process is to create a billing format that willbecome the foundation for all billings

• Header Tab – Used to set which information is printed on the invoice heading• Hours Tab – Used to set how much detail is printed on the hours based portion of abill, and how that information is sorted, summarized and subtotaled

• Display Options – Used to set which column information is printed on unit billings• Footer Tab – Used to set what information is printed at the bottom of the bill

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Projects > Billing > Billing Formats > Manage Generic Billing Formats


Manage Supporting Schedule Formats

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Projects > Billing > Billing Formats > Manage Supporting Schedule Formats

Demonstration

• Create a T&M Billing Format• Supporting Schedule Format

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Project Labor Categories

• The PLC is the foundational structural element for the properfunctioning of the Time and Material billing.

• It defines the type of work being performed, and it is specificallycorrelated to the contract.

• It is always associated with a billing rate when the billing formula iseither loaded labor or rate schedule.

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Demonstration

• Setting up PLCs• Linking PLCs to projects• Linking PLC rates to projects

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Rate Type Matrix

• There are 5 possible rate type codes that can be used on the Project PLC rate screen.• The default is always B for the designation of an actual billing rate.

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CodeEmployee's Pay Rate

Multiplier CeilingBill Rate Pay Rate/Bill Rate

CorrelationYear 1 Year 2 Year 1 Year 2A Actual $40.00 $50.00 2x N/A $80.00 $100.00 DirectlyB Billing $40.00 $50.00 N/A N/A $79.95 $79.95 NoneC Ceiling $40.00 $50.00 2x $95.00 $80.00 $95.00 Directly But CappedS Standard $40.00 $50.00 N/A N/A $40.00 $50.00 No DilutionT Transaction $40.00 $50.00 N/A N/A €160.00 €160.00 Indirect

Billing Formula Applicability

• Codes A, C, and S all deal directly with how an employee’s actual hourly rate areused in the computation of the billing rate.

• S is a variation of A in that the codes are only different when a salaried employeeworks more than 40 hours in a standard work week. S will apply the standard rate asopposed to the diluted effective rate.

• C applies a multiplier factor just like A and S, but it caps out the multiplication to aceiling rate.

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Code(s) Formula

B Loaded Labor

A, C, S Rate Schedule – Multiplier

T All Formulas. Applies to Multicurrency Billings.


Billing Formula Applicability

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A

B

Rate Sequence Table Rules

• Set up of this table ismandatory for any project with a loaded labor orrate sequence formula.

• Always define the set up at the lowest transaction level of everyproject node.

• Use this table to point to the rate table where the billing rates weredefined.

• Point to the appropriate level of the source project where the rates arestored.

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Rate Sequence Table Rules

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Projects > Project Setup > Project Master > Manage Project User Flow > Def Rate Seq (sub task)

Projects > Project Setup > Revenue > Manage Rate Sequence Orders

Define Rate Sequences

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The system will always referencesequence number 1 first. If it isunable to find the appropriateproject PLC combination, it willsubsequently reference any otherlines defined in this table.

The Lookup providesa view of the four

possible rate tables.


Possible Rate Tables

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Most DetailedSequence 1, 2

• Project Employee(Labor) CategoryWork Force PEC

• Project Vendor(Labor) CategoryWork Force PVC

DetailedSequence 3

• Project (Labor)Category PC

GenericSequence 4

• (Labor) CategoryPC

Rate Table Description of Rate Table

PVC Subcontractor/Vendor – Project Specific Billing Rates

PEC Employee – Project Specific Billing Rates

PC Project Specific Rates

C Database Wide Rates

Source Project

Four types of records that may serve as a Source Project

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The lowest level node of theproject, generally the samenode as where the labortransaction is charged.

The highest level node of theproject.

An intermediate level of theproject.

A node of another project witha similar rate structure.


Source Project

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000102Drafting

Level 3: Task/ActivityLevel where the Rate Sequence Table is established

01 SouthPlace

02 PrecisPlace

03 WestPlace

04 NorthPlace

05 EastPlace

06 PreblePlace

HS LegacyHistory

AXIOM

ASPIN

Source Project is Level 1

Source Project is an Intermediate Level

Source Project is Another Project

Source Project is a Node at the Lowest Level

Ashapp156vs:7009 says:

The source project is not the same as the Project enteredon the main form. If you are using discounts, pleasemake sure that the source Project and the Projectentered on the main form are both using PLC Discountsor your billing rates will be incorrect.� Prevent this page from creating additional dialogs.

Source Project

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Projects > Project Setup > Revenue > Manage Rate Sequence Orders

The source project is mandatory for all rate tableswith the exception of the global rate table – Code C


Source Project

• Options for the designation of a Source Project:• No Designated ‘Source Project’: For global rates, a source is NOT required since the billingrates apply to all projects.

• Level 1 of the Project: Defining the rates at level 1 is based on the assumption that the ratesapply to all lower level nodes of the project.

• An intermediate or lower level of the project: Defining the rates at some lower level assumesthat billing rates may vary based on the structural elements such as CLIN or delivery order.

• A Dummy Project: This methodology works well for a family of projects using thesame billing rate methodology such as a common GSA Schedule or in anenvironment based on using multipliers and rate code A.

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Actual incurred costs will be marked up by a factor

Multiplier based Time and Material Billing

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Employee Pricing Matrix

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ID Name PLC Hourly Rate Billing @ 2X Ceiling00006 Sinclair ARC JR $ 45.00 $ 90.00 Not Applicable00002 Checyzinski ARC DR $ 57.50 $115.00 Not Applicable00003 Szieskoski ARC SR $ 75.00 $150.00 Not Applicable00005 Preswick ARC MG $110.00 $220.00 $200.00

(C) Ceiling Code

• Acts as a not to exceed rate when the multiplier is applied against the hourly rate

(S) Standard Code

• Acts to counteract the dilution of the hourly rate in instances where the employee’seffective hourly rate is lower

• This traditionally occurs for salaried employees who record all hours worked although theyare only compensated for their standard work week hours.

(T) Transaction Code

• Refers to the transactional currency

Define Rate Sequence

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The Rate Sequence must beestablished at the charginglevel of the project in orderfor the Load Labor Ratesprocess to properly priceout the labor.


Billable Value

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Any questions?

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Time and Material Processing

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Time and Material Process Flow

Initiating Transactions• The billing process begins with transactions.• Generally, the bulk of these transactions contributing to a time andmaterials invoice are timesheet and accounts payable vouchers.

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Steps to Processing Time and Material Bill

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Review OpenBilling Detail

Run Load LaborRates

Calculate StandardBills

Manage StandardBills – Review

online

Print Standard Bills– Review Draftcopy – Status is“Unselected”

Manage StandardBills – Change

status to“Selected”

Print Standard Bills –To print final copy tocustomer, status

must be “Selected”

Post Standard Bills

Load Labor Rates

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Projects > Billing > Standard Bills Processing > Load Labor Rates

Enter the FiscalYear and Period.

Confirm that theradio button isset to both.

Run the process(Gears icon)


Load Labor Rate Process

What does this process do?• Load Labor Rates process

• Relies exclusively on the proper set up of the Rate Sequence Table• This process initially references every transaction in Open Billing Detail, and it searches for acorresponding transaction project ID in the Rate Sequence Table.

• In the Rate Sequence Table, it finds the pointer to the appropriate billing rate tableand source project. Finally, the effective bill date is matched against the date rangesin the billing table.

• Subsequently, a billing rate and rate type code are populated in the Open BillingDetail record.

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Projects > Billing > Standard Bills Processing > Manage Open Billing Detail

Open Billing Detail

How do I know that it worked?

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In the Labor Tab of the OpenBilling Detail record, the billingrate and rate type should now

be populated with data


Calculate Standard Bills

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Projects > Billing > Standard Bills Processing > Calculate Standard Bills

Manage Standard Bills

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Projects > Billing > Standard Bills Processing > Manage Standard Bills

Review the bill in ManageStandard Bills, then change thestatus of the bill to “Selected”,once the “Draft” copy is verified.Take note of the Invoice Number.


Print Standard Bills

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Projects > Billing > Standard Bills Processing > Print Standard Bills

Enter the Project and Invoicenumber to print the bill.

Note: The “Include UnselectedInvoices” is not selected.

Post Standard Bills

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Projects > Billing > Standard Bills Processing > Post Standard Bills

Access the Post Standard Billsscreen to post the bill.


Demonstration

T&M Bill Processing

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Any questions?

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Recap

To summarize, here are the topics we have discussed:

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• Purpose of a work force in controlling laborcharges against any type of project

• Difference between Employee Work Forceand Vendor Work Force screens

• Time and Material Formulas

• Use of Rate Type codes

• Function of the Rate Sequence table

• Role of the Load Labor Rates process inproperly updating a labor transaction recordthat initially resides in Open Billing Detail

• Project Work Force setup steps

• T&M format and supporting schedule

• PLC setup and linking PLCs and PLC Rates toprojects

• T&M bill processing

Thank you for attending this course

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Send comments and feedback [email protected]

Deltek is the leading global provider of enterprisesoftware and information solutions for professional

decades, we have delivered actionable insight thatempowers our customers to unlock their business

deltek.com/university

Documents

COSTPOINT BILLING SERIES - Deltek Billing Series ... • The PLC is the foundational structural element for the proper functioning of the Time and Material billing. • It