Cost and Bill Rates for a Project Enterprise Labor Resource

During the search and evaluation of resources to fulfill a project resource request, a resource manager can view resource cost and bill rates and select a resource that meets the financial requirements of a project.

Project assignment rates provide the data to calculate labor resource cost and bill amounts for analyzing margins and revenue forecasts. Resource and project managers can adjust the rates on project assignments to provide the most current reporting information.

Aspects of project enterprise labor resource cost and bill rates include:

Defining resource rates
Comparing rates when evaluating resources
Populating project assignment cost and bill rates
Adjusting project assignment rates
Calculating project labor cost and bill amounts

Defining Resource Rates

Project application administrators can define cost and bill rates for a resource in the Manage Project Enterprise Resources page > Create Project Enterprise Resource window. Administrators can also define rates when importing resources from external sources such as third-party applications.

For financially-enabled projects, Project application administrators can setup cost rate schedules or define project overrides and bill rates at the contract-level.

Resource rates are optional.

The resource rate types are:

Cost Rate: The rate for a unit of work that determines the cost for a resource on a project.
Bill Rate: The rate for a unit of work that determines the invoice or revenue recognized amount for a resource on a project.

Units of work are stated in hours.

Comparing Rates when Evaluating Resources

A project resource request can contain the following resource rates:

Target cost and bill rates: Project managers can specify target cost and bill rates on a project resource request. Rates are optional on the request.
Resource cost and bill rates: When you specify a resource for a request, the application copies the resource's cost and bill rates to the request.

When a resource manager searches for resources to fulfill a request, the resource's cost and bill rates appear on the Search and Evaluate Resources page for all resources in the search results. The resource manager uses the Compare Resources page to compare the target rates to the rates for selected resources.

Tip: Project and resource managers can also view the resource rates on the Resource Details page. This is especially useful if the resource manager doesn't perform a search for resources, but instead is considering only one resource to fulfill a request.

Populating Project Assignment Cost and Bill Rates

Assignment rate currency is based on the project currency. The application doesn't copy rates from the resource or project resource request to the assignment if the rate currency is different than the project currency. If rates aren't specified for the resource or project resource request, or if all available rates are in a currency other than the project currency, then the assignment is created without bill or cost rates.

The following table describes the methods of populating cost and bill rates on project assignments.

Method of Creating Assignment	Method of Populating Assignment Cost Rate	Method of Populating Assignment Bill Rate
Resource fulfills a project resource request	Assignment uses the resource cost rate	Assignment uses the target bill rate from the project resource request If a target bill rate isn't specified on the request, then the assignment uses the resource bill rate
Resource is assigned directly to a project	Assignment uses the resource cost rate	Assignment uses the resource bill rate

Adjusting Project Assignment Rates

Project managers can adjust resource rates on the Manage Project Resources page for resources who are directly assigned to the project. Project managers can adjust the rates for any project resource on the Edit Project Resource Assignment page. Rate changes that you make in Project Management for confirmed resources are reflected on the assignment in Oracle Fusion Project Resource Management.

Resource managers can adjust resource rates on the Edit Project Resource Assignment page. Rate changes are reflected on the assignment in Project Management.

You can't adjust the assignment rate currency.

Adjusted rates are reflected in the labor cost and bill amounts on the resource's tasks.

Note: Cost and bill rate changes on the project or assignment don't affect the resource's cost and bill rates on the Manage Project Enterprise Resources page.

For financially-enabled projects, any manual updates to resource rates won't be considered when managing financial aspects of the project, such as financial plans, budgets, and forecasts. If the project manager selects the Refresh Rates action on the Manage Project Resources page, it replaces the manual updates with the default standard rates from the rate schedules or overrides from the project settings.

Calculating Project Labor Cost and Bill Amounts

To calculate the cost or bill amount of project labor resources, the application multiplies each resource's labor effort in hours by the resource's cost or bill rate.