Creating a Labor-based Project Revenue Rule

To create a labor-based project revenue rule:

1. Go to Lists > Relationships > Projects. Click View next to the charge-based project you want to create a project revenue rule for.

2. Under the Financial subtab, click Project Revenue Rules.

3. Click New Labor Based Rule. A popup window opens.

4. Enter a name for your rule.

5. Select a service item for your revenue rule.

   Only service items with both an income account and deferred revenue account selected on the item record will appear in the Service Item field.

   Note:

   The service item selected determines which accounts are used for the revenue element. For labor-based rules, the service item also determines the charges that are considered revenue to be distributed. If you use multiple service items for your charges, you will need to create a labor-based project revenue rule for each service item.

   Updates made to accounts on item records will not update previously created revenue elements.

6. Under Charge Rules, in the Name field, select the name of your charge rule to determine how much revenue should be recognized.

   Note:

   Planned time entries are required for labor-based project revenue rules.

7. Click Add.

   You can add multiple charge rules of the same type to each revenue rule. Time-based charge rules can be added to multiple revenue rules with differing service items.

8. On the Rates subtab, in the Rate Basis field, choose how rates are determined for revenue recognized with this rule. Choose one of the following:

   • Billing Classes — If you use the Per-Employee Billing Rates feature, you can calculate revenue rates based on billing classes assigned to your project resources.

   • Resources — This option lets you set rates for each resource. These rates are set on employee records under the Human Resource subtab on the Rates subtab and on vendor records under the Financial subtab on the Rates subtab. Rates set on the project task are not used for revenue calculation.

   • Service Items — This option takes the rate from the service items selected on the time entries logged for this project.

9. In the Rate Multiplier field, enter a decimal number you want to multiply the calculated rate by to determine the recognized amount for the revenue created by this rule..

10. If you want to round the time logged for this project for recognized revenue calculation, select a rounding method.

11. If you selected Resources as your rate basis you must select which resources you want to use for this revenue rule and define a rate for each resource.

12. Click the Filters subtab.

13. Enter any criteria you want to use to determine which time entries are used to generate revenue.

14. When you have finished, click Save.