"Fulfillment Location" is a feature for companies who carry out projects from multiple offices to manage the labor rates for each of those offices. Different labor rates can be set for all Labor Types by the Fulfillment Location or office from which they are carried out. Specifying the Fulfillment Location in an opportunity automatically factors in the labor rate for all labor used in the Quote.
While the Fulfillment Location feature is primarily designed for a multi-office scenario, the feature is handy when working on projects that require a labor rate that is higher or lower than usual. For example, lower labor rates for Non-Profit organizations and a Fulfillment Location named "NonProfit" for all projects with Non-Profit organizations.
Add Fulfillment Locations
A Fulfillment Location can be a city, state, or country that requires a different labor rate.
Go to Catalog > Fulfillment Locations under Settings and click "New fulfillment location". In the modal, add the location and click "Create".
You'll later set a Labor Rate for every Fulfillment Location. So, add Fulfillment locations such that a Labor Rate applies to the entire location or geographical area.
Set a Location as Default
We have a location named "Default" as the default Fulfillment Location. After you have added the required locations, you can set the most used one as the default.
When you add a new Labor Type to Cloud, you always set the Labor Rate for this default location.
Set Labor Rates for Fulfillment Locations
To set location-wise Labor Rates for a Labor Type, go to Labor Types under Catalog and click the Labor Type. In the modal, click "Enable Fulfillment Location" in the lower left corner, which expands the Pricing section in the modal. Here, you can specify the Labor Rates for all Fulfillment Locations. Click "Save" to save the rates.
In this screenshot, we set Labor Rates for "Installation" Labor in three US cities.
*Fulfillment Location is a top-level setting in an opportunity. So, as a good practice, you should enable Fulfillment Locations for all your Labor Types. Otherwise, you may not be able to add all the necessary labor in your quotes.
Fulfillment Location in Opportunity
Specifying the Fulfillment Location when you create an opportunity is optional and used only in a multi-office scenario. Otherwise, you don't need to use the Fulfillment Location feature.
Once you have added all the Fulfillment Locations and set the Labor Rates for all Labor Types, you can start specifying the Fulfillment Location when creating the Opportunity.
Labor Rates in Quotes
All labor, whether through Category Rule, Labor as a line item, or Packages, will automatically use the Labor Rate for the Fulfillment Location specified in the Opportunity.
In the following screenshot, we see a quote for an opportunity from the Los Angeles office. Here, the labor rate for installation is $100 per hour.
Check out this article for more details about managing labor for a Project.