Threshold groups - labor hour terms
It is possible to define groups of thresholds in order to configure 'dynamic' labor hour rates for the Terms for labor hours. The dynamic lies in the fact that you can configure different ranges / thresholds for the hourly rates that must be applied to the total number of labor hours spent on an order. This determines the final labor hour revenue calculation on an order.
You can configure the threshold groups and thresholds in the Thresholds for terms TSI. See Defining dynamic thresholds (threshold groups for terms) for the procedure.
In this Thresholds for terms TSI, you first create one or more Threshold groups of the type Hourly rate-based. On the next selection level, you add the actual labor hour thresholds. A threshold group of the Hourly rate-based type can subsequently be linked to Terms for labor hours, after which the appropriate hourly rates will be applied to any associated orders, when generating revenues.
 | Good to know: • The threshold group is applied as follows: for non-PPM orders the hours are totaled up across main order and subs (when linked to the same labor hour term, based on Hour type and linked Trade / Tradesperson category). For PPM orders the hours are totaled up for each order individually. • Thresholds for hourly rates can only apply to revenue lines to which no surcharge applies (provided a surcharge is defined on the Surcharge terms). Also see: Surcharges - general terms and labor hour terms . Howver, if surcharge terms are percentage-based the thresholds will apply. |
Example of threshold group configuration
Threshold group for Hourly rates | Total no. of hours spent on the order | Applicable hourly rate |
|---|---|---|
Threshold 1 | 1 - 10 hours | EUR 80 |
Threshold 2 | 11 - 20 hours | EUR 75 |
Threshold 3 | 21 - hours | EUR 70 |
The applicable rate is derived from the total number of hours spent on an associated order. This means that threshold 2 is applied if an order is created for a contract with:
• dynamic terms / threshold groups for labor hours
• a total number of labor hours of, for example, 15
Under threshold 2, the order's labor hour revenues will amount to 15 x 75 EUR = 1,125 EUR. But if, for example, 25 hours were spent in total on that same order, threshold 3 will be applied, because the order's labor hour revenues then amount to 25 x 70 EUR = 1,750 EUR.