Configuring Rate Component Groups

Objective

After completing this lesson, you will be able to understand the role of rate component groups and learn to configure them effectively

Rate Component Groups

A Rate Component Group consists of Rate Components and additional rate variables that collectively influence the calculation of a bill rate or pay rate. Rate Components are used to adhere to local or national regulations governing the workforce.

For instance, in the UK, Latinum Logistics has four main rate components:

  • MSP Fee
  • Pension cost of service
  • A Markup percentage

When multiple rate components are in use, they can be arranged into levels to manage the sequence of calculation. However, there is an exception: Rate component types such as MSP Fees do not require a level designation as they are applied last.

Configuring a Rate Component Group

As the SAP Fieldglass administrator for Latinum, you will create a Rate Component Group for all UK-based Workers. To ensure calculations are in order, the Pension cost of service will be applied first, followed by the GBR Markup and MSP Fee.

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