Rate schedule planning options enable you to select the source of rates you use in planning to calculate cost and revenue amounts for budgets and forecasts that you either generate automatically or enter manually. You can choose rate schedule options at the project level, for plan types within the context of a project, and for plan versions.
If you select the option to use planning rates, then you can choose the cost and revenue rate schedules to use to generate amounts. If you do not select the option to use planning rates, then Oracle Projects automatically chooses the rate source and derives rates to calculate actual cost and revenue (bill) amounts.
You must specify rate schedules for resource class when you are using a planning resource list with resource classes enabled. When Oracle Projects is unable to determine the actual or planning rates to apply in a calculation, Oracle Projects automatically applies rates from the default rate schedules you specify for resource class based on the resource class associated to the planning resource.
When resource classes are disabled, specify a default rate for all planning resources. The default rate is used in computing planned amounts for the financial plan when a rate is not defined for a resource at any other source. For example, for an employee the rate is derived as per the following rules:
First Preference: Labor Costing Overrides rule
Second Preference: Organization or Operating Unit Labor Costing rule
Third Preference: Project Resource Default Rate
The expenditure type chosen for the planning resource in the planning resource list is used to compute the burden cost for the plan lines when there are no resource classes.
If you enter a financial plan line or modify a generated line when resource classes are disabled, you specify the quantity, the revenue is computed using the default bill rate specified in the Rate Setting tab.
For a comprehensive discussion of how Oracle Projects determines and uses rates for financial planning, see: Using Rates for Workplan and Financial Planning.