Overview of Cost and Bill Rates

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.

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.

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.

You can define cost and bill rates for a resource in the Manage Project Enterprise Resources > Create Project Enterprise Resource . You 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.