ANS-0674 · PROJECT MANAGEMENT
How Does NetSuite Determine Project Task Resource Billing Rates?
This guide explains the hierarchy NetSuite uses to calculate the unit price for resources on project tasks, highlighting key setup requirements.
Short answer
NetSuite determines project task resource billing rates based on a specific precedence flow, which considers various setup configurations. Key factors include billing classes, item price levels, price groups, employee hourly rates, and customer-specific pricing. Understanding this hierarchy is crucial for accurate project billing.
Scenario
Organizations utilizing NetSuite for project management often need to understand the precise mechanism by which resource billing rates (unit prices) are calculated for project tasks. This involves navigating various pricing configurations and understanding their order of precedence. A clear understanding ensures accurate invoicing and revenue recognition for services rendered.
Solution
To understand the precedence flow for determining resource billing rates (unit prices) on project tasks in NetSuite, refer to the following flow diagram:
https://drive.google.com/a/it-ration.com/file/d/0Bw8CE-YEeJ0feHctY1RGUUZRbnc/view?uspsharing
Accurate rate determination relies on certain foundational setup configurations within NetSuite. These include:
Billing class
Item price level/price groups
Employee hourly rate
Customer price level/group pricing/item pricing
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