How Do I Determine Cost Rate for Expenses?

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When it comes to calculating the cost rate for an expense record, ArchiOffice uses the Rate field to determine that. If this rate is modified, the cost rate will not be updated automatically. If you want to modify the cost rate of an expense, you can do so from the Time/Expense -Detail screen by clicking the Cost Rate button on the right of the Status field.


The only time a cost rate is automatically modified is when it has a value of $0 or null. However, if a value already exists (for example, a default rate set by the expense default settings) and you change the rate, the cost rate will remain unchanged.


For example, in the Time/Expense Detail screen, you can select an expense type FFE (Furniture, Fixture and Equipment), enter a quantity of 1 and a rate of $2,000 (the client being charged $2000). This expense entry will automatically be given a cost rate of $2,000. If you later modify the rate to $1,000, the cost rate will still remain as $2,000 until you click the Cost Rate button and modify it. It is not unusual for companies to overcharge a client (say $3,000 for an FFE item) and then modify the cost rate manually so that their profitability reports reflect the true profit for that expense item.