Data Administration › How to Set Up the Datamart › Set Up the Default Rate Matrix

Set Up the Default Rate Matrix

The default rate matrix defines the following:

Cost plus rules

Cost plus rules allow you to mark up actual or standard costs. Three types of markup amounts are available: multiplier (factor), burden, and overhead. Cost plus rules are added to cost plus codes to determine the cost plus.

Administrative costs and rates

If you charge administrative amounts on invoices, use the administrative method to determine the amount of administrative fees to bill. Administrative charges are applied on a percentage basis to invoices and computed when you approve a bill. Administrative charges can be based on all transaction types (labor, materials, equipment, and expense or a subset of these) and applied based on time, clients, and projects or some combination thereof.

Tax structures

Tax authorities are the governing bodies that determine the taxes applied to invoices and then collect them. If you are going to apply taxes to invoices, specify tax authorities to define that tax structure.

Note: Financially-enabled projects do not have cost and billing rates unless you specify a default rate matrix and assign it to the respective transaction types.

To create a default rate matrix, first define the cost plus codes, then the administrative methods, the administrative codes, the tax authority, and the tax methods. Burden equals cost (actual or standard) times the burden amount. When this cost plus rule is invoked, the burden amount is included in the calculation for the total transaction amount.

To set up the default rate matrix

1. Select Define Matrix from the Finance menu.

   The Define Matrix: Cost Plus Codes page appears.

2. Click New.

   The Cost Plus Code Properties page appears.

3. Complete the following fields and click Submit:

   Cost Plus Code

   Defines the unique code to represent this item.

   Description

   Defines the description of the code.

   Short description

   Defines the brief description of the code.

   Applies To

   Defines the cost type to which the cost plus code applies:

   • Actual (the actual amount paid for transactions)
   • Standard (the blended or burdened rate)

   The cost plus code is created.

4. Click the Admin tab.

   The Define Matrix: Administrative Methods page appears.

5. Click New.

   The Administrative Method Details page appears.

6. Complete the following fields and click Submit:

   Administrative Method Code

   Enter a unique identifier for this method (up to eight alphanumeric characters).

   Description

   Defines the brief description of the code.

   Active

   Indicates if this administrative method is enabled.

   Percent

   Defines the percent of the bill amount that should be allocated for administrative charges.

   From Date

   Defines the start date.

   To Date

   Defines the end date.

   The administrative method is created.

7. Click the Codes subtab.

   The Define Matrix: Administrative Codes page appears.

8. Click New.

   The Administrative Code Properties page appears.

9. Complete the following fields and click Submit:

   Administrative Code

   Defines the unique code for this administrative code.

   Description

   Defines the brief description of the code.

   Active

   Indicates if this administrative code is enabled.

   Tax Code

   Defines the tax code. Click the Browse and icon and select a tax code.

   The administrative code is created.

10. Click the Taxes tab.

    The Define Matrix: Tax Authorities page appears.

11. Click New.

    The Tax Authority Properties page appears.

12. Complete the following fields and click Submit:

    Tax Authority Code

    Defines the unique identifier for this tax authority.

    Limits: 4 alphanumeric characters

    Description

    Defines a detailed description of the code.

    Limits: 40 characters

    Active

    Indicates if the tax authority is enabled.

    Phone Number

    Defines the phone number for tax authority.

    FAX

    Defines the facsimile number for tax authority.

    Vendor

    Defines the vendor name. Click the Browse icon to select a vendor.

    Attention

    Defines the name of the contact person at the tax authority.

    Address

    Defines the tax authority's address.

    City

    Defines the city in which the tax authority is located.

    County ID

    Defines the county in which the tax authority is located. Click the Browse icon to select a county ID.

    State

    Defines the state in which the tax authority is located. Click the Browse icon to select a state.

    ZIP

    Defines the tax authority's ZIP code.

    Country ID

    Defines the country ID in which the tax authority is located. Click the Browse icon to select country ID.

    The tax authority is created.

13. Click the Methods subtab.

    The Define Matrix: Tax Methods page appears.

14. Click New.

    The Tax Method Properties page appears.

15. Complete the following fields and click Submit:

    Tax Method

    Defines the unique identifier for the tax method.

    Limits: 4 alphanumeric characters.

    Description

    Defines the detailed description for the code.

    Limits: 40 characters

    Percent

    Indicates if the tax method is enabled.

    From Date

    Specifies the from date.

    To Date

    Defines the to date.

    The tax method is created.