Exploring the Basics of Rates


After completing this lesson, you will be able to:

  • Explain what a Rate is and how it is used.
  • List the basic elements that make up a Rate and explain how they contribute to the Final Rate.


Put simply, a Rate is the amount the Buyer pays for a worker or service.

Of course, it really isn’t that simple: Rates are the result of what can be a rather complex negotiation between the Buyer and the Supplier, and the costs almost always include more than just what the Buyer is paying for the Worker.

Play the video below to learn more about how Rates drive transactions in SAP Fieldglass.

The Final Rate

Bill Rate

When WorkingNet procures a worker from reCrewIT, the Bill Rate is the amount WorkingNet is going to pay the supplier for the worker.

But even then, "Bill Rate" itself does not necessarily represent the final rate that is presented to the Buyer by the Supplier.

Requested Rate

When WorkingNet creates a job posting, the Bill Rate that is displayed represents the Requested rate. This is simply the rate WorkingNet is hoping to pay for the particular position that it is trying to fill. reCrewIT may not actually have agreed to this rate, so…

Image portraying a buyer job posting with a requested rate.

Presented Rate

…if WorkingNet allows it, reCrewIT can, in turn, submit job candidates with a different rate than the one requested. This is called the Presented rate, and it appears on the work order. WorkingNet can either accept the presented rate or negotiate further.

Image portraying a supplier invoice with a presented rate.

Final Rate

When WorkingNet does agree to the rate, it becomes the Final Bill Rate, which, as the name implies, is truly the final Bill Rate.

This is the rate which is included on the supplier’s invoice.

Image portraying a buyer's job posting equaling the amount on a supplier's invoice.

MSP Fees

And here’s the thing about Bill Rates: the Final Bill Rate the Supplier sees is the rate they will receive from the Buyer. Conversely, the Final Bill Rate the Buyer sees will be the rate they are paying for the resource.

Now, that may seem obvious, but in fact these rates may not be the same.

If an MSP is involved in the transaction, WorkingNet may see a different Final Bill Rate than reCrewIT. This is because the MSP charges a fee for its service, and that fee is reflected in the final bill. But the MSP Fee is only seen by the organization that is paying that fee. So if reCrewIT is paying the MSP, it’s Final Bill Rate will be slightly higher than WorkingNet’s. Conversely, if WorkingNet is paying the MSP, it’s Final Bill Rate will be slightly higher than reCrewIT’s.

Not a Simple Sum

In any case, it's clear that Bill Rates aren’t necessarily as simple as just being the sum of the Pay Rate and whatever incidental costs might comprise the Rate Components.

They have their own variations and nuances.

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