Rate Precedence Rule

PSA can accommodate a simple or more advanced cost and billing structure by allowing you to make cost and billing rates and apply them to users for all work they do, or define exceptions for certain users, tasks, projects, and clients to make the rates more specific to the work done.

Rate rules defined in the Financial setup are applied to users by defining their cost and billing rules in the user setup process. Rate rules can be applied to users regardless of the project they are working on, in which case this rate is directly applied to the time they spend on the projects. If the rates are applied conditionally, then, depending on the precedence, certain rates are applied for the cost or billing calculation.

Example: For example, a user may have a general billing rate of $100 per hour, but for a certain client, a different rate, say $80 per hour can be defined. In this case, when the user works on tasks not belonging to this client, the general billing rate of $100 is applied to each hour spent; for all the hours they have spent on projects belonging to this client, a rate of $80 is applied.

Calculating the Rate Rule precedence

There are two ways by which the rate precedence can be calculated:

1. Using the Weight Rule to determine the rate precedence and
2. Using the Rate Precedence Rule Chart to determine the rate precedence.