FlexiTime is set up to cater for the complexities of All of Government recruitment invoices. The requirements from the Ministry of Economic Development specify that:
Invoices for Temps should clearly state:
- The name of the Temp and the Position/Role - and Business Unit/Project/Cost Centre (if appropriate)
- Name of Requestor/ Client Contact
- Each component of cost:
- Temp Base Pay including time consumed *temp hourly rate
- Provider fee (ie your mark-up %) include your fee% and the name of the AOG Lot
- AoG Administration Fee –1.5% of temp pay plus provider fee (but not on-costs)
- On-costs - for Temporary assignments - capped at 17% of Temp Base Pay
- Evidence to support Temps hours charged (eg timesheet)
The examples that follow show the charge types required to automatically generate invoices with all these details for temps. The contractor requirements are the same, but without the on-costs. Note that setting up these charge types is a one-off task.
Firstly, a job based charge type is required to generate the hourly charges for the temp's time.
The charge rate is derived from the Job. The Invoice Line Narration has the merge tokens that will provide all the information requested by MED.
This charge type is then set on the invoicing tab of the work under which the temp records their time.
The next charge type will generate the provide fee:
This charge type uses the Invoice Total as the rate. The Default Quantity is set to 0.1, which will be multiplied by the invoice total to give the 10% fee.
Showing the rate and quantity on the invoice is unnecessary so Show Rate and Quantity has been unticked to exclude them for this and the other percentage based charge types. While initially setting up the invoices you may choose to leave these showing if you want to check the calculations.
We want this line to show second on the invoice so the Sort Order is set appropriately.
The admin fee is calculated on both the temp rate and the provider fee:
As with the provider fee, the Invoice Total is used as the rate, however in this case, Invoice Total Rate Uses is set to All Lines. This means that both the lines generated from the timesheets and the provider fee will be totalled and multiplied by 0.015 (the Default Quantity). Also as for the Provider Fee we are not showing the rate / quantity. The Admin Fee lines will appear third on the invoice, after the Provider Fee. The sort order is important not only for where the lines print on the invoice, but also for the sequence of the invoice calculations. This charge type needs to have a sort order that places it after the Provider Fee to ensure that the provider fee is included in the invoice total that this 1.5% is applied to.
The next charge type required is for the on-costs. This will be identical to the Provider Fee, but with the Sort Order set to Fourth and the Default Quantity set appropriately. Because Invoice Total Rate Uses is set to Timesheet Lines, the on-costs will only be applied to the temp time, not the provider or admin fees.
These three percentage based charge types are added to the client's default charge types so they will be automatically added to all invoices:
Note that the Default Quantity is left as zero. This means the default quantities set up on the charge types will be used.
Finally you might want to include claimed expenses on the invoice. Setting up an Expenses charge type. One important difference is that the Sort Order needs to be set to Fifth. This means the expenses will be excluded from the earlier calculations of percentage fees.
An invoice generated for two temps (one performing two roles) who have entered some expenses as well as hours will look as follows:
The detailed descriptions of the expenses and the breakdown of the hours worked and approvals will be appended in the time audit report.