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Setting labor rates for fulfillment locations

How to set different labor rates for the same labor types and use them when projects are executed from different offices or locations

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Written by Ashok P
Updated over 7 months ago

"Fulfillment Location" is a feature for companies that carry out projects from multiple offices or locations. Different labor rates can be set for the labor types by the fulfillment location or office from which they are carried out. In the opportunity, specifying the fulfillment location will automatically factor in the labor rates set for that location.

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 executed for 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 the 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 example, 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 be unable 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, as a line item, or packages, will automatically use the labor rate for the fulfillment location specified in the opportunity.

The following example shows 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.

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