- What are roles?
- How to enable and set up roles
- How to use roles in projects
- What to keep in mind about roles
What are roles?
As an admin user, you can set up roles for your site to define hourly charge-out rates for your team members based on their skill set, level of seniority, experience, responsibilities, or any other criteria. The main function of roles is to support role-based approach to pricing, where the exact price of the service depends on who actually carries out the work.
For example, since a Senior Designer’s salary is higher than that of a Junior Designer, you may want to charge more for a Senior Designer’s work. By setting up respective roles and role prices, these different roles can collaborate on the same task, and every minute they log will be recorded with their corresponding hourly charge-out rate, i.e. the role's selling price. As a result, you and your project managers can easily:
- track revenue based on role prices
- instantly see the revenue you’ve earned based on any work already completed by people in different roles
- in case of fixed fee or retainer projects, keep an eye on how much budget you still have left as you see burndown in real time based on role prices
- bill for time based on role prices
- each time entry automatically takes the correct selling price of the doer upon invoicing
How to enable and set up roles
To use role-based prices, you need to switch on roles for your site. This can only be done by users who have the permission to manage roles. To give this permission, go to Settings > Administration > Permission sets, open the Modules and actions of the relevant permission set, scroll down to Settings and tick the Manage roles box.
Now head to Settings > Sales and finance > Roles and enable roles for your site. You can then see and manage the list of roles in that same view.
NB! Once roles are enabled, each site user must be assigned to a role. Therefore, the first time you switch on roles for your site, all existing users will be assigned to a default placeholder role. You can simply delete the placeholder role once you’ve assigned all your team members to correct roles.
Click on the New button to add a new role. This takes you to the role modify view, where you can name the role, define selling prices for it, and add users to that role. You can later return to this modify view at any point by simply clicking on the role name in the role list.
The selling price is the hourly rate you charge your client when someone in this role is working on their project. The prices defined here will be used for revenue calculation and time-billing in every project where you choose to apply role-based prices.
If the price of the service varies depending on the nature of the project or if you do business in several currencies, you can set up multiple price lists for your site. Once price lists are set up, you can return to Roles to define each role’s selling price for each price list.
You can assign as many team members to one role as you wish, but every team member can only be in one role.
How to use roles in projects
Once roles are enabled and properly set up, you will have the option to use role-based prices in projects. If you apply role prices to a project:
- revenue will be calculated based on role prices
- time will be billed based on role prices
Let’s take an example project to see how this all works in practice.
First step - we’ve enabled roles and assigned each team member to a role. We’ve also set up different price lists for different currencies and defined role prices for each currency.
Now let’s say our client has approved a quote for a 80 h web design project. We’ll create our project and tasks directly from that quote to track our costs and income accurately with the help of the Quoted vs Actual table.
In the project set-up view, we’ll select the price list we want to apply and choose role prices as the basis for revenue calculation.
Let’s say our Junior Designer, whose selling price is 80 EUR per hour, has worked on the project for 50 hours and logged time under the task accordingly. Therefore, the Income to date column in the Quoted vs Actual table shows that we’ve earned 50 x 80 = 4000 EUR so far.
Once our Senior Designer, whose selling price is 100 EUR per hour, logs their 30 hours of work under the same task, the Income to date column is automatically updated to reflect that data. 30 x 100 = 3000 EUR has been added to the total.
This is how role prices help you track revenue accurately in real-time as the project progresses. Note that you can also see how the final numbers look compared to the initially quoted sums. If you’re working with fixed fee projects, you can easily track budget burndown this way – by comparing income to date with the quoted sums.
Let’s suppose we also need to add an ad hoc 3 hour consultation task to the project. This will be shown in the Not quoted section because it was not included on the initial quote. However, once a team member logs their time under it, we can see how much we could potentially charge the client for this task as well.
We now want to bill our client for the design work we’ve completed. We’ve enabled time-billing, so we can simply select the time entries to invoice. The unit price of each time entry on the invoice corresponds to the selling price we’ve set for respective roles. This means we don’t need to update anything manually, we can simply save the invoice and send it out.
What to keep in mind about roles
- If you assign a user to a new role, their old role will be overwritten since one user can only be assigned to one role.
- Deleting a role is only possible when there are no active users assigned to that role.
- If you update the role price in the price list, all of the projects using that price list will be affected by the change. To avoid corrupting your own data, simply create a new price list with the new price rather than update prices in the existing price lists.