Equipment Rate Hierarchy

When you capture equipment costs for work orders (in SM Work Orders, Work Completed tab), the system uses a specific hierarchy to determine the equipment rates to use for calculating billable rates for work completed equipment lines.

Customer and Job Work Orders

  1. Service Site Overrides
    • The system will first look for rate overrides by equipment/revenue code rate (in SM Rate Equipment Overrides) at the service site level. If a match is found for the equipment/revenue code specified on the work completed line, the associated markup or flat rate will be used.
    • If an override does not exist for the specified equipment/revenue code, the system will then use the Markup rate defined in SM Rate Override Base.
    • If no rate is defined in SM Override Base (i.e. the Markup field is blank) and this is a customer work order, the system will then look for overrides at the Customer level (see Step 3). If this is a Job work order, the system will then look for overrides at the scope rate template level (see Step 4).
  2. Customer Overrides (Customer WOs only)
    • The system will look for rate overrides by equipment/revenue code. If a match is found (in SM Rate Equipment Overrides) for the equipment/revenue code at the customer level, the associated markup or flat rate will be used.
    • If an override does not exist for the specified equipment/revenue code, the system will then use the override standard markup rate defined for the customer in SM Rate Override Base.
  3. Effective Date
    • If override rates are not found at the Service Site level (job work orders) or Customer level (customer work orders), the system will then look for Effective Date overrides using the rate template specified for the work order scope. If Effective Date overrides exist, the system will compare the Date specified on the work completed line to the Effective Dates specified for the rate template. If the work completed date falls within any of the effective date ranges, the system will then use the appropriate effective date template to determine equipment rates.
    • The system will first look for rate overrides by equipment/revenue code rate (in SM Rate Equipment Overrides). If a match is found for the equipment/revenue code specified on the work completed line, the associated markup or flat rate will be used.
    • If an override does not exist for the specified equipment/revenue code, the system will then use the override standard markup rate defined for the effective date template in SM Rate Template Effect Dates. No further rate search will be performed.
  4. Rate Template
    • If the work completed date does not fall within any of the effective date ranges or no effective dates are defined, the system will then look for rate overrides by equipment/revenue code at the basic rate template level. If a match is found for the equipment/revenue code at the rate template level, the associated markup or flat rate will be used.
    • If an override does not exist for the specified equipment/revenue code, the system will then use the standard equipment markup rate defined for the rate template in SM Rate Templates.
Note: If you enter a 0.00 value in a rate field, the system assumes this is the desired rate and no further attempts will be made to locate a rate at a lower level. This applies to rates entered in SM Rate Equipment Overrides, SM Rate Override Base, and SM Rate Templates.

Quote-Related Work Orders

For work orders generated from a work order quote, the system uses a similar hierarchy to determine equipment rates. However, for these work orders, the system will use only the rate overrides/rate template defined for the quote sequence. Overrides defined at the customer or service site level are not used.
Note: The hierarchy described below is used only when the work order scope referenced on the work completed equipment line has a Price Method of Time and Material. Billable rates are not calculated for work completed lines associated with Flat Price or Non-Billable work order scopes.
  1. Quote Override Rates
    • The system will first look in the SM Rate Equipment Overrides table defined at the quote sequence Override Rates level. If overrides exist and a match is found, that rate will be used.
    • If a match is not found, the system will use the override equipment rate defined in SM Rate Override Base at the quote sequence Override Rates level.
  2. Effective Date
    • If override rates are not found at the quote sequence Override Rates level, the system will then look for Effective Date overrides using the rate template specified for the quote sequence. If Effective Date overrides exist, the system will compare the Date specified on the work completed line to the Effective Dates specified for the rate template. If the work completed date falls within any of the effective date ranges, the system will then use the appropriate effective date template to determine the labor rate to use.
    • The system will first look in the SM Rate Equipment Overrides table for the effective date. If overrides exist and a match is found, that rate will be used. If a match is not found, the system will use the override equiment rate defined in SM Rate Template Effect Dates for the effective date template. No other rate search will be performed
  3. Rate Template
    • If the work completed date does not fall within any of the effective date ranges or no effective dates are defined, the system will then look for override rates at the quote rate template level. If a match is found in the overrides table, that rate will be used. If a match is not found, the system will use the standard equipment rate defined for the rate template (in SM Rate Templates).
      Important: If you enter a 0.00 value in a rate field, the system assumes this is the desired rate and no further attempts will be made to locate a rate at a lower level. This applies to rates entered in SM Rate Equipment Overrides, SM Rate Override Base, SM Rate Tempate Effect Dates, and SM Rate Templates

Agreement Work Orders

For agreement-related work orders, the system uses a similar hierarchy to determine equipment rates. However, for these work orders, the system will only use the agreement service, agreement, or work order scope template. This hierarchy is determined as follows:

  • If the work completed line is for a preventative maintenance work order (those generated via SM Generate PM Work Orders) and the agreement service has a Pricing method of T-Time of Service, the system will use the rate template defined for the service in SM Service. The system will follow the same overrides hierarchy discussed above; however, in this case, it will start with the Effective Date overrides defined for the agreement service rate template. If the date specified for the work completed line does not fall within the effective date range or no effective dates are defined, it will use the rate template overrides and finally the rate template rates (if overrides are not found). No further rate search is performed.

  • For manually entered work order scopes associated an agreement, if the Price Method is T-Time and Material and you check the Agreement Rates box, the system will use the rate template assigned to the agreement in SM Agreements (using the same hierarchy specified above for preventative maintenance work orders).

  • If you did not assign a rate template to the agreement or if you did not check the Agreement Rates box, the system will use the rate template assigned to the work order scope, following the same hierarchy specified above for preventative maintenance agreements.

  • If you do not associate a work order scope with an agreement, but you associate the work completed line with an agreement, and you check the Agreement Rates box, the system will use the rate template assigned to the agreement in SM Agreements (following the same hierarchy specified above for preventative maintenance work orders).

  • If you did not assign a rate template to the agreement or if the Agreement Rates box is unchecked, the rate template specified for the work order scope will be used, following the same hierarchy indicated for preventative maintenance work orders above.