Why Resource Classes Matter – Billing Rates

4castplus offers the capability for you to categorize your Labor, Equipment and Materials resources into what are called resource classes. This capability is an extremely powerful control and reporting mechanism that enables you to achieve two key objectives: To standardize billing rates To organize resources into strategic groupings for reporting and vendor negotiations To get a handle on how you would make best use of resource classes in your organization, I’ll give you a few examples below. I’ll break out the discussion into two areas: Billing and Reporting to give you some ideas as to how they’d be used in either scenario.  There’s a lot of overlap between the two usages and most organizations can make use of both – even if you have no billable resources in your projects. For this post, I’ll focus in on the Billing side. Billing Having a standard set of project billing rates is a key part of the business of generating revenue from billable resources.  Establishing the rates themselves, however, is only one part of the whole picture.  Resource Classes in 4castplus are there to help bring some structure to simplify the often complex management of Billing Rates. In a nutshell, resource classes are a convenient way to group resources together that have the same billing rate. Each actual resource grouped under the same Class may have a unique Cost Rate (what the cost is to you), but using a Resource Class, you can bill them out at the same Billing rate. For instance, when negotiating with customers on a project bid, you’ll probably share your charge-out (billing) rates with them; and on your rate sheet that you send to your customer, you’ll most likely specify the type