This topic describes the use of a Dilution Calculation Tool that can be used to quickly and easily find the Effective Cost Rate (calculated rate) based on various input factors such as dilution style, regular cost rate, time period, and hours entered in the timesheet. Other relevant fields adjust as needed based on the inputs.
What’s covered in this document:
Download The Dilution Calculation Tool
Click here to download the Dilution Calculation Tool to your system:
Using The Dilution Calculation Tool
The Dilution Calculation Tool has four different input fields:
- Dilution Style (dropdown menu)
- User's Regular Cost Rate (enter input)
- Time Period Type (dropdown menu)
- Hours Entered In Timesheet (enter input)
Once the options are selected/entered into these fields, the calculation is performed and the remaining fields adjust accordingly.
Dilution Style: Choose the desired dilution method from the dropdown menu.
- 0 - No Dilution
- 1 - Run Dilution always
- 2 - Only run Dilution if hours worked < hours in work week
Dilution Rules: The method of calculation that will be performed. This field changes based on what is selected for Dilution Style.
User's Regular Cost Rate: Enter the Cost Rate (from the Person Profile > Rates tab) for the user. It is recommended that you use five decimal places to ensure the most accurate results.
Time Period Type: Select the appropriate time period type from the dropdown menu.
- Every Two Weeks
- Twice a Month (Semi-Monthly)
Hours In The Time Period: The number of hours in the Time Period Type selected.
Hours Entered In Timesheet: Enter the number of hours for the user from their completed timesheet.
Calculation: This field shows the calculation being done based on the Dilution Style selected.
Effective Cost Rate Factor: The cost rate factor to be applied to the calculation. This field adjusts accordingly when the previous fields are set.
Effective Cost Rate (calculated rate): The hourly rate multiplied by the effective cost rate factor.
Cost To The Project Before Dilution: The cost that appears on project reports before the dilution calculation (regular cost rate * hours entered in the timesheet).
Cost To The Project After Dilution: The cost that appears on project reports after the dilution calculation (effective cost rate * hours entered in the timesheet).