Configuring Contingent Rates on a Job Posting Template

Objective

After completing this lesson, you will be able to configure rates on a Job Posting Template.

Rates

Rates are the core and central financial accounting element that determine the cost of a contingent worker requested within a job posting. The rate structure and planned hours to be worked determine the Job Posting budget amounts for the client. Rate cards are typically negotiated between a buyer and their supply base and can vary based on the position, skill level, location, and other multiple factors.

A company with an existing rate structure might have a rate card agreement with differing suppliers, for various contingent labor positions, in multiple locations and with varying rates.

Rates must be added to the job posting template as a backup for an incomplete rate grid. If a supplier/site rate combination is not represented on the rate grid, the rates added here will be the rates used for billing.

A job posting template highlighting the Rates section. The section list three rates: the ST rate, the OT rate, and the DT rate. Each details the Rate Category/UOM, the type of Rate, the Minimum rate amount, and the Maximum rate amount. A column at the end contains a check mark that can be selected to remove the rate from the list.

Configure Rates on a Job Posting Template

WorkingNet Networking, Inc., a global manufacturer of data networking equipment, is building new distribution centers in several countries, while simultaneously implementing new logistics software and processes. The new logistics processes will require WorkingNet's accounting methods to be revised.

To help transition to the new software and the revised accounting methods, Melanie, the manager of the finance department at WorkingNet, needs to procure several accounting clerks for the six-month period in which the software is being configured and implemented.

To accommodate these new positions, a new Job Posting Template must be created.

As the SAP Fieldglass administrator for WorkingNet, you've already created the admin objects required to properly configure this new job posting, including a new contingent type, a worker pay type, a distribution list, and qualifications.

You've also completed the first steps required to create a job posting template: selecting the contingent type and configuring the base information.

And you've also completed the initial information in the Accounting section of the template.

Now you're ready to begin configuring the rates in the template, which are also configured in the Accounting section.

Due to the complexity of configuring the Accounting page, this simulation has been divided into three lessons. This simulation is the second of the three, illustrating the process of configuring rates. It was preceded by the completion of accounting details, which is covered in the lesson Managing Accounting on a Job Posting Template and is followed by the process of setting the template rules, which is covered in the lesson Defining Job Posting Template Rules. For more on configuring rates, see the unit Working with Rates.

ExerciseStart Exercise

Configuring Rates on a Job Posting Template Using a Rate Schedule

A Rate Schedule is a group of shifts and applicable rates that allow buyers to configure logic into their rate structure. They allow complex rates to be assigned to specific positions and assigned to workers so they can be automated in time sheet calculations.

If WorkingNet had created a rate schedule for the Logistics Accounting Clerk position, the process of adding rates to the job posting would be a little different. Firstly, rates would not need to be added manually. Also, because rate schedules only reflect a single currency and job posting templates allow only one rate schedule to be associated, separate templates would need to be built for each individual currency.

Watch the video below to see how rates in a job posting template are configured using a rate schedule.

For more on configuring rate schedules, see the unit Working with Rates.

Summary

Rates are crucial as they determine the net cost and budget amounts for job postings. Rates must be added to job posting templates so the costs related to the position can be properly managed.

Key Points:

Rates Determine Job Posting Budget: Rates are fundamental in determining the financial accounting and budget for job postings.
Configuring Rates in Job Posting Template: Rates need to be configured and then included on the job posting template, including currency, rate types (standard, overtime, double time), and selected rates.
Currency and Location Specificity: Rates must be configured for specific currencies and locations applicable to the position, ensuring accurate financial accounting.
Rate Schedules Streamline Configuration: Rate schedules allow complex rates to be assigned to specific positions, simplifying the configuration process.

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