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A cost rate is used to evaluate the cost to the practice of any time or expense that is posted to the Time Ledger. This use of cost rates within Time & Fees is optional and can be set in the General tab under Time Ledger Options. Cost rates are usually calculated from the cost to the practice of a staff member working (e.g. based on the individual's salary).
Each staff member registered on the Time Ledger can have a unique cost rate, or staff at the same level (e.g. clerks or managers) can share a single cost rate. Cost rates can also be assigned to Work Types, which will take precedence over the cost rate assigned to the staff member. It is possible for certain staff to have a zero cost rate (e.g. partners) if necessary for reporting purposes and WIP valuation. Cost rates are assigned to the staff under the rates section and as a part of the process of creating staff members.
Cost rates can be adjusted from a certain date (e.g. after a salary review). When time is posted to the system the date of the posting will determine the cost rate used, this way any corrections which relate to an earlier cost rate will reflect the correct cost at that time.
If there is no rate assigned to the staff member or a posting precedes the date of the earliest cost rate, the Time Ledger will produce a warning, if this is ignored an zero rate will be assumed.
Any changes made to an existing cost rate will not alter postings already made under that rate (i.e. the change is not retrospective).
Because the nature of cost rates is sensitive to both the practice and any individuals involved, it is possible to restrict who can view, alter and assign them, for more information see the Allowances section of the Creating Staff Help Topic.