Rate, Costs and Commissions

Version 2.0 of Tempus has expanded features for keeping track of financial information related to the contract. Tempus now includes the ability to record and track multiple cost components for a contract and to provide the ability to track commissions to sales reps and other commissioned employees.

This document describes these features and shows how to use them.

Overview
The Rate, Cost & Commission page allows you to edit both commissions and detailed costs for a single contract.

First, choose your contract from the list then enter your commissions and your costs. You can click the Calculate button any time while you are using this page to add up your commissions and costs and subtract them from the billing rate to show gross margin for the contract.

Fill out both form panels, then click the OK button.

A Word about Timing
You can change the entries on this page as your costs change, so you’re not locked into these amounts for the life of the contract. But, you must make the changes prior to the submission of the timesheet on which they are to become effective or use the timesheet update feature on this page to change the cost history.

Rate, costs, and commissions are added to the cost history files when the timesheet is submitted for approval. Tempus takes the current entries submitted on this page and uses them to create a series of cost history records that are subsequently read for queries and reports.

The column at the right of this page allows you to change recent cost history. The column shows a list of 15 prior timesheets after the contract is selected. Use the checkboxes in this list to choose the timesheets that should be updated with the new cost amounts that you have just entered.

Working With the Rate and Costs Panel
The cost fields allow you to enter details about your potential expenses for the contract. Some of the fields are provided to show specific items like Payroll Costs, while others (the Splits) allow you to enter items that are unique to the deal or your business.

First, some field definitions.

  • Payroll Cost is the hourly rate you pay your consultant.
  • COGS is usually your overhead for insurance, etc.
  • Billing Rate is the amount you charge your client for each hour of the consultant’s work.
  • The Splits allow you to enter your own, custom cost items.

Enter your costs first.

If you used Version 1.0 of Tempus and you routinely entered cost information, you will see that information in the Payroll Cost field. If not, enter the Payroll Cost in dollars and cents in the box provided, and then complete the COGS field.

Next, enter your unique costs in the Split fields. Use the left box to describe the cost and the right box to enter the amount per hour.

Try to be consistent in your use of the splits – use each split to describe the same expense on each contract. Doing this will make the totals on the revenue and cost reports meaningful because it will keep the “apples” and “oranges” in separate columns. On reports, the Split descriptions are used as column headings.

Like the Payroll Cost, the Billing Rate field may already be filled if you used it in Version 1.0. If not, enter the billing rate in dollars and cents in the field provided.

The last entry in the Rate & Cost panel is a checkbox asking “Update prior timesheet to include these rates and costs?” This checkbox will be enabled when you have existing timesheets for the contract and no cost history records. It allows you to create cost history for old timesheets. It is mainly provided to allow users of the previous version of Tempus to add cost history to existing contracts.

It will apply the cost numbers you have entered to every timesheet for that contract in the database. So, you should use it when the costs over the life of the contract have been stable. If you raised the billing rate two months into the contract, you shouldn’t check the box because doing so will make the revenue appear too high for the first two months.

A number of Queries and Reports are available to tally up and present the costs when you need them. These items are identified on the Launch Bar by the “Revenue & Cost” prefix and show revenue and cost for an individual Contract, Client or Sales Rep.

On most queries the splits are totaled and displayed as “other costs”.

Working With the Commission panel
The Commission panel allows you to record the hourly commission amounts that are due to each Sales Rep and Manager on a contract.

Each of your Sales Reps and Managers will be shown in the list. If you have a consultant or administrator that should receive commission, create a Sales Rep type user record for that individual so he will be shown on the list too.

Enter the hourly commission amount in the text box provided in dollars and cents. To stop commissions for any individual, just enter a zero.

Update prior timesheet to include these rates and costs? This is just like the similar question on the Rate & Cost panel. It will be enabled when you have existing timesheets for the contract and no commission history records. It allows you to create commission history for old timesheets. It is mainly provided to allow users of the previous version of Tempus to add commission history to existing contracts.

It will apply the cost numbers you have entered to every timesheet for that contract in the database. So, you should use it when the commissions over the life of the contract have been stable.

Like Rates and Costs, Commissions are sliced for presentation in several different ways on the queries and reports.

The most important question about commissions is “how much do they get”? So, a query is provided to show commissions for a single recipient and a report is provided to show commissions for all recipients. Each can be framed for a specific calendar period.

Other queries are provided to commission generated by a contract (to all recipients) and for a client (for all contracts and recipients).

Reports show similar information for all contracts and all clients.

Closing and Saving your Costs and Commissions
After both panels have been updated, click the OK button at the bottom of the page to save your changes. You can edit this page any time during the life of the contract, but be aware of the timing considerations mentioned above.
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