...

Anchor
system_flat_rate system_flat_rate

Anchor
_Toc151867528 _Toc151867528

Anchor
_Toc200860707 _Toc200860707

Anchor
_Toc237141259 _Toc237141259

Anchor
_Toc487792197 _Toc487792197

System or Mechanic Flat Rate

NOTE: There are slight differences when using this flat rate method with the Paperless Shop add-on. Please read through this section in its entirety before implementation.
This method uses either the flat rate set in the "Flat Labor Rate" switch in the Main System Parameters (SSM, switch 4) OR the flat rate set in the employee file (MMM). The benefit of using this flat rate method is that it helps to standardize the time charged for the work performed in your shop. This is accomplished by incorporating the use of the standard hours from the VMRS codes. The standard hours are referenced and displayed when labor entries are posted for a job. By always using the default time displayed, the time charged for that particular will be consistent. If needed, you can always override the defaults to charge more or less than the "standard job rate." For more information about estimated hours, refer to "How the System Determines the Estimated Time for a Job." in Chapter 2Getting Started. 
Before using this method for charging flat rates, a decision needs to be made on where the flat rate will come from—the "Flat Labor Rate" switch or the employee file.

...

1. Determine which flat rate will be charged by the system—the "Flat Labor Rate" switch OR the employee file.
2. Set the hourly labor rate as needed. Depending on the decision made in the previous step, the rate will either be set in the "Flat Labor Rate" switch in the Main System Parameters (SSM, switch 4) OR in the Flat rate field in the employee file (MMM, Wages tab).
3. Set the "Use Flat Rate/Valid Hours" switch in Miscellaneous Parameters I (SSI, Miscellaneous I tab, switch 42).
   1. Calculate by Flat Rate: Select Yes to use this flat labor rate method.
   2. Use System or Employee Rate: Select System to apply a single labor rate to all repairs (SSM, switch 4). Select Employee to charge multiple flat rates based on the mechanic who completes the job (MMM).
   3. Non-Zero Labor Hours: Set this switch according to preference. Select Yes to require a non-zero value for the estimated hours (recommended setting for Paperless Shop users). When adding a work order line, if the estimated hours is 0.0, you'll be required to enter a new value before the job can be added to the work order. Select No to allow zero values for the estimated hours.
4. Review time standards in the VMRS code file (optional, but recommended). When adding a work order line, the system uses the estimated hours set in the VMRS codes.

...