Overview of Item Rates

Who:	All Users
Why:	The following provides a definition of Rate Types and an overview of how Rates are used to determine the cost of Items on Orders/Invoices.

Overview 

The Rate is the amount charged for an Item. A Rate Table or Schedule of Rates is uploaded and attached to each Provider Contract. The Rate Table determines the unit rate and type of charge for each item that can be claimed on Engagements associated with that Contract. A separate Rate Table is created for each Contract. Therefore different rates can be specified for each Contracts as required. 

 

The Rate Type and Unit of Measure determine how the rate is applied when claiming for payment against items. 

 

There are four rate types in use for LPG Contracts: 

1. Fixed Rate: 

The rate for this Item cannot be changed on Orders and Payment Claims. The rate can only be changed by the Contract Manager by updating the Rate Table that is attached to the Contract.  

A typical example of a fixed rate item is a Deliverable Document. Usually they are not claimable items so they are fixed at $0.00 (N1).  

NOTE: The costs associated with generating the document need to be picked up on other chargeable items. 

 

2. Capped Rate: 

The rate for this Item can be changed to a lower value on an Order or Payment Claim. The rate cannot be changed to a value higher than the “cap” set in the Rate Table.  

In the example shown below the Lawyer’s Legal Fee is capped at $2380 per day (N2). When the item has been added to the Claim, the Unit Rate has been set to $2300 (N3). The cap prevents the Unit Rate being set above $2380.   

 

3. At Cost Rate: 

The rate for this Item is only an estimate. The Client may set an estimated value or may set it at $0.00 if no estimated cost is known when the Order is created. The Provider can change the Unit Rate as required when claiming payment for the item.  

In the example shown below no estimated cost was given for a Female Junior Briefing Fee (N4). When the Provider adds the item to the Claim, the Unit Rate is set as required (N5).    

 

4. Variable (V): 

This rate is similar to “At Cost”. It is only an estimation of the actual cost. Typically it is used for lump sum items with a quantity of 1 but the exact cost is not known until the Provider is selected. The rate can be set as required by the Client when the Order is created. The Provider cannot edit the cost of Variable Rate item on the Order itself. Instead, once the Provider knows the cost of the item, they can add the item to the Payment Claim. 

In the example shown below no estimated cost was given for the variable rate item (N6). When the Provider adds the item to the Claim, the Unit Rate can be set as required (N7). 

 

IMPORTANT: Take note of the Unit of Measure (UOM) when specifying the Claimed Qty.    For example: A legal fee might have a Unit of Measure of “per hour”, “per day” or “per JOB”. Claiming “1.00” means different things in each case - “1 hour”, 1 day” and “1 job” (lump sum) respectively.  Typically for “per JOB” type items (N8) the Claimed Qty is 1.00 and the Unit Rate is the total amount being claimed.  References to the Rate Types “Agreed” (A) and “Non-invoiced” (N) may be seen in some LPG screens. Neither of these types is currently in use in LPG.

Tips & Troubleshooting 

 

• While some item rates can be modified when submitting a Claim for Payment, once the claim has been accepted and proceeds to the Invoice stage, none of the item rates can be changed.