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Setup: Pay Contract for Truck Contractor - Load Revenue
In order to set up rates to pay a contractor for load-based attributes you need to set up a 'Pay Contract' for the contractor. Select Contracts | Payment Contracts | Contract Setup from the Main Menu. This link explains how to use the 'Pay Contract Wizard' in order to set up a pay contract.
The key steps involved in setting up a contractor contract in the wizard are Steps 2, 4, and 6:
Step 2: Select the Contractor for the Pay Contract
In this step you select the contractor you want to pay. Click on the 'Type' Contractor in the middle of this window; this selection fills the list on the left with your contractors. You then select the contractor (you can only select one at a time) you want to pay.
Note that there is an entry called "OWNER" This entry must not be used for a non-trucking contract where the option 'Do Not Track Activities, Contractors, Equipment on Load Slips' has been selected for the block.
Step 4. Select 'Load Revenue' Contract Type
You must select the 'Calculate Pay as a Percentage of Load Revenue' option.
Step 6. Enter Pay Rate
This is the step where you enter the rate you want to pay the contractor. A detailed explanation is available in the link: Setting up a Pay Rates: Calculate Pay based a Percent of Load Revenue. The screen below shows an example of the rate screen.
The two requirements for a contractor to be paid according to a pay contract are:
(1) that the block on the pay contract must match the block of the load (or the block entry must be blank), and
(2) that the activity must be Trucking.
In this screen, you can set up the rate breaks you want to use to pay the contractor. In row 1 (in the example above), I have entered a blank for the block, indicating I want a rate of 95 percent of Load Revenue to apply to trucking for ALL blocks. In row 2, I have entered an 'exception' rate that indicates that if the trucking is performed in block '03-RAINBOW-2991', I want to pay 96 percent of Load Revenue. The rate in row 3 is the same as in row 2, except that it has an effective date of 6/1/2004 -- meaning the rate of 97 percent will apply for loads delivered on or after 6/1/2004. For loads delivered between 1/1/2004 and 5/31/2004, on block 03-RAINBOW-2991, the rate of 96 percent is operative.
In calculating the percent of load revenue, The Logger's Edge multiplies the percentage amount by the revenue for the matching pay activity for the load. Thus, if your contract is set to pay 95.0 percent of load revenue for TRUCKING, you must have revenue for TRUCKING on the load. This requirement means that you must have a revenue contract set up for the matching activity for which you want to pay on a percent of load revenue.
Extension
There is an option in The Logger's Edge that allows you to override the activity matching requirement. We can configure your system so that you can specify the revenue activity upon which you want your percentage rate to be applied (see below).
In row 1, the 15.0 percent rate is applied to load revenue from the 'LOG PURCH' activity -- not the trucking activity. The Revenue Activity column gives you the flexibility to choose which revenue activity you want to use as your pay basis upon which to apply the percentage. For example, if your revenue contract with the mill is a 'stump-to-dump' contract that covers all phases in one rate, you might want to pay your truckers a fixed percentage of that total rate.
By default, the Revenue Activity column is NOT enabled in The Logger's Edge.
