Understanding the Billing Rate Code Hierarchy

If you bill equipment by location, you must set up a billing rate code hierarchy for each billing rate code that you define. For instance, if you normally charge for a piece of equipment using a weekly rate but use the equipment at a particular site for only three days, the system needs to know the rate to charge for the equipment use. The system uses the hierarchy that you establish to determine when to use the daily rate code instead of the weekly rate code.

If you charge for a piece of equipment at a weekly rate, the billing rate code hierarchy includes only hourly and daily rates. If you assign a monthly rate to a job, the hierarchy also includes a weekly rate. For example, if you charge a piece of equipment for 10 days using a monthly rate, the system uses the weekly rate because it is lower than the sum of the daily rates and lower than the monthly rate.

In addition to establishing the hierarchy for billing rate codes, you can:

• Indicate whether a rate code is billable or nonbillable.

• Indicate billing frequency for a rate code.