Labor Rate Hierarchy

When capturing labor for work orders (in SM Work Orders, Work Completed tab), the system uses a specific hierarchy to determine the labor rates to use for calculating billable rates for work completed labor lines.

The following table identifies the levels and search order used by the system to find a default labor rate in the labor overrides table (SM Advanced Labor Overrides). The “Xs” denote that a value has been supplied and a blank indicates that no value has been supplied.

The first row represents the minimum set of information required for a labor rate. Each successive row provides more specific information, and overrides all preceding levels. For example, rates defined by call type and pay type will override rates defined by call type.

Technician

PRCo

Craft

Class

Call Type

Pay Type

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Note: If the system does not find a match in the SM Advanced Labor Overrides table, it will use the standard labor rate. However, because you can set up labor overrides by rate template, effective date template, customer, and/or service site, the system will use the following hierarchy to pull the labor rate:

Customer and Job Work Orders

The hierarchy described below is used only when the work order scope referenced on the work completed labor line has a Price Method of Time and Material. Billable rates are not calculated for work completed labor lines associated with Flat Price or Non-Billable work order scopes

  1. Service Site
    • The system will first look in the SM Advanced Labor Overrides table at the service site level. If overrides exist and a match is found, that rate will be used. If a match is not found, the system will use the override labor rate defined in SM Rate Override Base for the service site.
    • If no override labor rate is defined in SM Rate Override Base (i.e. the Rate field is blank) and this is a customer work order, the system will then look for overrides at the Customer level (#2 below). If this is a Job work order, the system will then look for overrides at the scope rate template level (#4 below).
  2. Customer
    • The system will look for advanced labor overrides using the same hierarchy described above. If a match is found, that rate will be used. If a match is not found, the system will use the override labor rate defined in SM Rate Override Base for the customer.
  3. Effective Date
    • If override rates are not found at the Service Site level (job work orders) or Customer level (customer work orders), the system will then look for Effective Date overrides using the rate template specified for the work order scope. If Effective Date overrides exist, the system will compare the Date specified on the work completed line to the Effective Dates specified for the rate template. If the work completed date falls within any of the effective date ranges, the system will then use the appropriate effective date template to determine the labor rate to use.
    • The system will look in the SM Advanced Labor Overrides table for the effective date. If overrides exist and a match is found, that rate will be used. If a match is not found, the system will use the override labor rate defined in SM Rate Template Effect Dates for the effective date template. No other rate search will be performed.
  4. Rate Template
    • If the work completed date does not fall within any of the effective date ranges or no effective dates are defined, the system will then look for advanced labor overrides at the basic rate template level. If a match is found in the overrides table, that rate will be used. If a match is not found, the system will use the standard labor rate defined for the rate template (in SM Rate Templates).
      Important: If you enter a 0.00 value in a rate field, the system assumes this is the desired rate and no further attempts will be made to locate a rate at a lower level. This applies to rates entered in the SM Advanced Labor Overrides table at the service site, customer, and rate template levels, as well as the standard labor rates entered in SM Rate Override Base for the service site and customer levels, and in SM Rate Template at the rate template level.

      To ensure that the system will follow the hierarchy to the next level when a match is not found in the SM Advanced Labor Overrides table, leave the standard rate field blank at the service site and customer levels. This will allow the system to go to the lowest level (standard labor rate at the rate template level) when no match is found in the overrides table at any of the levels. You will only set a value of 0.00 or greater in the standard labor rate field for the service site or customer levels if you do not want the system to use the rates at the lower levels (i.e. setting the standard labor rate for a service site to 0.00 or greater will cause the system to only use that site's override and standard labor rates when entering work completed labor for a work order referencing that service site).

Quote-Related Work Orders

For work orders generated from a work order quote, the system uses a similar hierarchy to determine labor rates. However, for these work orders, the system will use only the rate overrides/rate template defined for the quote sequence. Overrides defined at the customer or service site level are not used.
Note: The hierarchy described below is used only when the work order scope referenced on the work completed labor line has a Price Method of Time and Material. Billable rates are not calculated for work completed labor lines associated with Flat Price or Non-Billable work order scopes
  1. Quote Override Rates
    • The system will first look in the SM Advanced Labor Overrides table defined at the quote sequence Override Rates level. If overrides exist and a match is found, that rate will be used. If a match is not found, the system will use the override labor rate defined in SM Rate Override Base at the quote sequence Override Rates level.
  2. Effective Date
    • If override rates are not found at the quote sequence Override Rates level, the system will then look for Effective Date overrides using the rate template specified for the quote sequence. If Effective Date overrides exist, the system will compare the Date specified on the work completed line to the Effective Dates specified for the rate template. If the work completed date falls within any of the effective date ranges, the system will then use the appropriate effective date template to determine the labor rate to use.
    • The system will first look in the SM Advanced Labor Overrides table for the effective date. If overrides exist and a match is found, that rate will be used. If a match is not found, the system will use the override labor rate defined in SM Rate Template Effect Dates for the effective date template. No other rate search will be performed.
  3. Rate Template
    • If the work completed date does not fall within any of the effective date ranges or no effective dates are defined, the system will then look for advanced labor overrides at the quote rate template level. If a match is found in the overrides table, that rate will be used. If a match is not found, the system will use the standard labor rate defined for the rate template (in SM Rate Templates).
      Note: If you enter a 0.00 value in a rate field, the system assumes this is the desired rate and no further attempts will be made to locate a rate at a lower level. This applies to rates entered in the SM Advanced Labor Overrides tables, as well as the standard labor rates entered in SM Rate Override Base (quote override or quote rate template levels) or SM Rate Template Effect Dates (quote effective date level).

      To ensure that the system will follow the hierarchy to the next level when a match is not found in the SM Advanced Labor Overrides table, leave the labor rate field blank in SM Override Rate Base or SM Rate Template Effect Dates. This will allow the system to go to the next level when no match is found in the overrides tables. You will only set a value of 0.00 or greater in the labor rate field if you do not want the system to use the rates at the next level.

Agreement Work Orders

For agreement-related work orders, the system uses a similar hierarchy to determine labor rates. However, for these work orders, the system will only use the agreement service, agreement, or work order scope template. This hierarchy is determined as follows:

  • If the work completed line is for a preventative maintenane work order (those generated via SM Generate PM Work Orders) and the agreement service has a Pricing method of T-Time of Service, the system will use the rate template defined for the service in SM Service. The system will follow the same overrides hierarchy discussed above; however, in this case, it will start with the Effective Date overrides defined for the agreement service rate template. If the date specified for the work completed line does not fall within the effective date range or no effective dates are defined, it will use the rate template overrides and finally the rate template rates (if overrides are not found). No further rate search is performed.

  • For manually entered work order scopes associated an agreement, if the Price Method is T-Time and Material and you check the Agreement Rates box, the system will use the rate template assigned to the agreement in SM Agreements (using the same hierarchy specified above for preventative maintenance work orders).

  • If you did not assign a rate template to the agreement or if you did not check the Agreement Rates box, the system will use the rate template assigned to the work order scope, following the same hierarchy specified above for preventative maintenance agreements.

  • If you do not associate a work order scope with an agreement, but you associate the work completed line with an agreement, and you check the Agreement Rates box, the system will use the rate template assigned to the agreement in SM Agreements (following the same hierarchy specified above for preventative maintenance work orders).

  • If you did not assign a rate template to the agreement or if the Agreement Rates box is unchecked, the rate template specified for the work order scope will be used, following the same hierarchy indicated for preventative maintenance work orders above.