Effective-Dated Rate Definitions

You assign an effective date to each rate set and rate plan. This action enables you to not only maintain a set of current rate sets and rate plans, but also to set up rate sets and rate plans for anticipated future use, and adjust transactions by using past-dated rate sets and rate plans.

The Pricing process uses the following date criteria to determine which rows are eligible for pricing:

• The date type (transaction or accounting) that you specify during implementation.

• The effective date of the rate set or plan.

• The effective date of the association of the rate set or plan to the activity.

Date Type

You select the transaction or accounting date option in the Pricing/Funds Distribution group box on the Installation Options - Project Costing Integration page.

If you specify the accounting date type, the Pricing process determines the eligible rows by matching the accounting date for each transaction row to the effective date range of the rate set or plan. Alternatively, you can specify the transaction date type for the Pricing process to select rows with a transaction date that matches the effective date range of the rate set or plan.

Effective Date of the Rate Set or Plan

You can price transactions by using a rate set or plan that is no longer current if the rate set or plan is in an active status. In other words, a rate set or plan can contain more than one active, effective-dated row. You establish the effective date when you set up a rate set on the Rate Sets page or set up a rate plan on the Rate Plans page.

Effective Date of Association of the Rate Set or Plan to the Activity

The association of a rate set or rate plan to an activity is effective-dated. The system will not price a row if the row's specified date type (accounting or transaction) is earlier than the effective date of the association of the rate set or plan to the activity. You establish this effective date on the Activity Definitions - Rates page when you use the page to associate the rate set or plan to the activity.

Example of Using Effective-Dated Rate Sets

Assume that you set up a rate set with two active effective dated rows, as shown in this table:

Effective Date	Source Analysis Type	Target Rate Option	Target Rate Amount	Target Analysis Type
January 1, 2004	TLX (incoming time report)	AMT (quantity × target rate)	25.00 USD	ACT (actual cost transaction)
January 1, 2005	TLX	AMT	50.00 USD	ACT

The rate set has an effective date of January 1, 2004, and uses incoming time report transactions as source rows. The Pricing process multiplies the time report quantities by a target rate of 25.00 USD to create actual cost transactions from source rows that have an accounting date that occurs between January 1 and December 31, 2004. On January 1, 2005, the target rate increases to 50.00 USD.

Assume that you create the following two source transaction rows:

1. The first transaction has a transaction date, accounting date, and currency effective date of April 1, 2004. The transaction quantity is 8, which is measured in work hours (MHR).

2. The second transaction also has a quantity and unit of measure of 8 MHR. The transaction date, accounting date, and currency effective date are June 1, 2005.

Now you run the Pricing process, which uses a target rate of 25.00 USD to calculate the first target row based on the rate set with an effective date of January 1, 2004. The process uses the new target rate of 50.00 USD to calculate the second target row based on the rate set with an effective date of January 1, 2005.

This table lists the target rows that the Pricing process creates for the two source transaction rows:

Accounting Date	Project	Activity	Quantity	Rate Amount	Analysis Type	Transaction Amount
April 1, 2004	PROJ1	ACT1	8 MHR		TLX
April 1, 2004	PROJ1	ACT1	8 MHR	25.00 USD	ACT	200.00 USD
June 1, 2005	PROJ1	ACT1	8 MHR		TLX
June 1, 2005	PROJ1	ACT1	8 MHR	50.00 USD	ACT	400.00 USD