How Do I Max or Cap Billing Rates (a Cost Plus billing mystery)

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Posted on by RedStorm

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Most of our larger contracts with clients are billed on a Cost Plus basis. We have situations where a client caps or sets a maxiumum billing/reimbursement rate. How can we use the tools (Allocator, etc.) in SL 7.0 FP1 or earlier...to best handle this situation and create a "ceiling"?

For example, we have a Cost Plus contract with Client A. Client A says we can't use a rate over 55.00 for the "cost of labor". An employee makes 60.00 (that is the cost of labor). Allocator should apply the "burden"/"payroll and overhead" and "fee" to the 55.00 cost and not the 60.00 cost.

(We have been SL users since 1/1/2006 and I don't know how to do this.)

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