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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Billable and Efficienc...
Microsoft Dynamics AX (Archived)

Billable and Efficiency Rate - Difference with an example

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What is the significance of Billable and Efficiency Rate? What are these rates and where are they used? I have gone through the technet explanation but that explanation could not explain the business application of these concepts. 

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  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Saran Kusare,

    To identify a difference you have to set up billable hours and efficiency hours at the time when you create timesheet periods.

    Let's say that you setup 40hrs/week for the billable hours and 30hrs/week for the efficiency hours in order to define that your employee receives a bonus if 30/40 % of his recorded hours can be charged to a customers.

    The next thing that you need to setup are your line properties. In the line properties form you have to define how the hour utilization is calculated. There are three parameters available there and the selection you make have an influence on how the hours posted and considered in the billable and efficiency rate calculation.

    Once the hours are recorded you can run the billable and efficiency rate calculations either from the project or the employee level. Please note that the % rates might be different depending on where you run those calculations.

    A business application are employee bonus amounts that are paid when certain billable or efficiency rates are reached.

    If you want to know this stuff in detail, please check out this book www.amazon.de/.../ref=sr_1_2;qid=1505932874&sr=8-2&keywords=ludwig+reinhard+dynamics where I describe and illustrate the use of those rates in detail.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Dr Ludwig,

    Thanks for the answer, will definitely check out the book..!

    Kind Regards

    Sarang

  • Community Member Profile Picture
    Community Member on at

    Can the billable rate and efficiency rates for an employee be different? Can this be explained with an example please?

    Kind Regards

    Sarang

  • Community Member Profile Picture
    Community Member on at

    Billable rate - difference between the billable and non-billable hours

    Efficiency rate - difference between the productive and non-productive hours

    Can these be different for the same employee for the same period?

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Sarang,

    Those rates can be different.

    It depends on what transactions are recorded and on how your line properties are setup. Can you share details thereof?

    Best regards,

    Ludwig

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