Using billing rate cards allows organizations to define different billing rates for groups of billing classes, streamlining the process of setting billing rates on charge-based projects using time-based charge rules. This system enables flexible rate negotiation for various roles required to complete projects for customers. For instance, Customer A might be billed at $150 per hour for a project manager, $75 per hour for a consultant, and $50 per hour for an analyst. In contrast, Customer B might be billed $200 per hour for a project manager, $150 per hour for a consultant, and $75 per hour for an analyst. By creating different rate cards using the same billing classes, these varying rates can be easily managed.
Creating and Assigning Rate Cards
Rate cards can be defined specifically for a project and assigned to a customer, making the new rate card applicable only to projects associated with the defined customer. The Related Records subtab on the billing rate card record lists all projects linked to the rate card. Additionally, new customer records now include a Billing Rate Card field, which defines the default rate card for each customer. This field is no longer hidden by default and can be selected for new charge-based billing projects, allowing for the choice between a customer-specific rate card or a generally available rate card.
Customer-Specific Rate Cards
When a rate card is defined for a specific customer, it becomes locked to that customer. Users cannot change the customer on projects where a customer-specific rate card is applied. When creating a new charge-based project with a rate card, selecting the Create Charge Rule box will automatically create time-based charge rules based on the selected rate card.
Prerequisites and Enabling Billing Rate Cards
To use Billing Rate Cards, ensure that Charge-Based Billing and Per-Employee Billing Rates are enabled. To enable billing rate cards, navigate to Setup > Company > Enable Features and click on Employees. Under Time & Expenses, check the Billing Rate Cards box and click Save.
Setting Up Billing Rate Cards
Once the feature is enabled, go to Setup > Accounting > Billing Rate Cards > New to create your billing rate cards. Billing class records will no longer include a field for defining rates; instead, rates must be defined on billing rate cards. A default billing rate card is automatically created with existing billing classes and default rates.
Creating a Billing Rate Card
1. Navigate to Setup > Accounting > Billing Rate Cards > New.
2. Enter a name for your rate card.
3. If using Multiple Units of Measure, select a unit type and sale unit for the first billing class listed.
4. Enter a price for the billing class. Note that if a price is entered before selecting a unit type and sale unit other than the base unit, NetSuite will multiply the price as the base price for the selected sale unit.
5. Continue defining prices for each billing class.
6. Click Save when finished.
When billing class is selected as the basis for time-based charge rules, a required Billing Rate Card field allows for the selection of the rate card for the new rule. It is possible to display rate cards on billing class records and list projects using the Rate Card on the Billing Rate Card record. Additionally, Billing Class and Service Item can be associated on a Rate card.
Copying and Versioning Billing Rate Cards
To copy an existing billing rate card, select Make Copy from the Actions menu on the desired rate card. Each customer can have a default rate card defined on their record or directly on projects. When creating a new charge-based project for that customer, the default billing rate card is used for new time-based charge rules. The Billing Rate Card field is hidden by default on the customer record but can be made visible through customization.
Creating a New Version of a Billing Rate Card
1. Go to Setup > Accounting > Billing Rate Cards.
2. Click View next to the rate card you want to add a version for.
3. Click Create New Version at the top of the page.
4. In the Effective Date field, select the date for the new rates to take effect.
5. In the Modify By (%) field, enter a percentage to increase or decrease all rates on the rate card. Enter a negative number to decrease rates.
6. Update individual rates by changing the values in the Currency field as needed.
7. Click Save when finished.
The previous rate card remains in effect until the selected date of the new version. Rate cards do not have expiration dates; the current rate card remains effective until a new version is created.
By effectively managing billing rates with billing rate cards, organizations can ensure accurate and consistent billing practices tailored to specific customers and projects.