Overview
ToolWatch offers distinct methods for calculating Job Cost and Billing charges for your tools and equipment. Each method calculates charges based on the Required Rate Groupings and any Optional Rate Groupings applied by the user.
Once a calculation method is selected for a row:
The value for the Calculation Method will always remain populated and can no longer display an empty value.
The calculation method can be changed to another method, but it cannot be removed or reverted to blank.
The Base Value locks and will no longer dynamically update to changes made in the Catalog model record; any future changes to Base Value must be made manually within the rate sheet.
Comparison of Calculation Methods
Method | Best For... | Charge Trigger |
Assignment | Unique or Quantity tools and equipment requiring a one-time fee. | A single fixed charge applied once an item is assigned, regardless of duration. |
Calendar (Time-Multiplier) | Items where charges are based on the length of time they are assigned. | Continuous charges calculated dynamically using time multipliers from the Assigned On date until the item is transferred or retired. |
Calendar Flat Rate | Predictable pricing using fixed dollar tiers for daily, weekly, and monthly rates. | Fixed dollar charges applied when assigned equipment crosses global migration thresholds, regardless of billing cycle days. |
Hourly Usage | Large equipment and fleet vehicles tracked by actual operating hours. | Charges applied only when actual operating hours are recorded in the Equipment Usage Log. |
Assignment Method
The Assignment method applies an initial fixed charge once an item is assigned to a project.
This is a one-time charge per assignment.
The charge triggers when an item is assigned, regardless of the assignment's duration.
Best suited for low-cost tools, consumables, or items with flat setup fees.
Calendar Method (Time-Multiplier)
The Calendar method applies charges based on the length of time an item remains assigned. It creates an "open" billing stream starting at the Assigned On date/time and a "closed" billing stream when the item is reassigned or returned.
Charges continue to accrue until one of the following occurs:
The item is transferred back to stock.
The item is transferred to another location or employee.
The item undergoes a circular transfer back to its current location.
The item is retired.
The system calculates total charges by deducting non-work days and hours established on Company and Project Calendars. You can choose between three levels of time calculation:
Calendar (Days): Rounds charges up to an entire day based on the Hours in a Day rule on the rate sheet and billable days on calendars. For example, if the rule is 8 hours and an item is assigned for 3 billable hours, it rounds to 8 billable hours (one day).
Calendar (Hours): Rounds charges up to the full hour based on billable days and hours in calendars. For example, an item assigned for 1 full billable day (8 hours) and 3 billable hours results in 11 total billable hours.
Calendar (Minutes): Rounds charges by the minute down to the last billable minute. For example, an item assigned for 4 billable days, 6 billable hours, and 45 minutes results in 38.75 billable hours.
Calendar Flat Rate Method
The Calendar Flat Rate calculation method establishes fixed dollar charges for tools and equipment on a daily, weekly, or monthly basis.
Fixed Price Tiers: Unlike traditional calendar methods that calculate rates using time multipliers, Calendar Flat Rate uses three fixed dollar price points (Daily Rate, Weekly Rate, and Monthly Rate).
Migration Thresholds: Once assigned equipment crosses a defined migration threshold set in Rate Sheet Rules, ToolWatch charges that exact flat rate regardless of how many days are in the billing cycle.
Billing Cycle Resets: When a billing cycle finishes, the accumulated hours and rate tier progression reset to zero for the start of the next billing cycle.
Availability: Configurable on Tools & Equipment rate sheets via ToolWatch Web for Pro, Pro+, and Enterprise subscription tiers.
Hourly Usage Method
The Hourly Usage method applies charges only when actual hours used have been recorded in the Equipment Usage Log.
This method is typically used for large equipment and fleet vehicles where an operator reports actual usage.
It ensures charges are applied only when an item is actively in use.
You can optionally apply an Idle charge per hour for hours the equipment was assigned but not in use.