ToolWatch automatically promotes charges from one billing tier to another (Daily → Weekly → Monthly) when the number of assigned hours reaches a configured threshold. These thresholds are called Migration Points and are controlled in the Rate Sheet Rules window.
This article explains how rate migration works, how to set it up, how it connects to Rate Sheet columns, and how it behaves across different calculation methods.
What You'll Learn
What migration points are and how global thresholds function
How migration operates for standard time-multiplier Calendar methods versus Calendar Flat Rate
Where to configure migration points in the user interface
How migration thresholds connect to Effective Rate Per Hour columns
Practical setup examples for time-multiplier and flat rate pricing
What Is a Migration Point?
A migration point is the number of billable hours that triggers a switch to a higher or lower billing tier. When ToolWatch calculates total usage time for an assigned tool or equipment item, it uses the Rate Sheet Rules to determine when to transition between rates.
Global Scope Note: Rate Sheet Rules and migration thresholds apply globally across an entire Tools & Equipment rate sheet. All items assigned to a single rate sheet share the exact same threshold rules.
Standard Migration Thresholds
By default, ToolWatch establishes standard default thresholds across billing periods:
Threshold Field | Standard Default | Billed As |
Migrate to Daily Rate at | 8 Hours | Daily Rate |
Migrate to Weekly Rate at | 40 Hours | Weekly Rate |
Migrate to Monthly Rate at | 160 Hours | Monthly Rate |
How Migration Operates Across Calculation Methods
Rate sheet migration points apply to both traditional time-multiplier Calendar methods and the Calendar Flat Rate method, but the resulting billing logic differs:
1. Time-Multiplier Calendar Methods (Days, Hours, Minutes)
Calculation Logic: Rates are calculated dynamically using time multipliers based on elapsed duration and calendar hours.
Effective Hourly Rates: ToolWatch divides the tier rate by the migration hours to determine an Effective Rate Per Hour for each level.
Rate Promotion: Charges accrue continuously until the assigned hours pass a migration threshold, at which point the calculation promotes the entire assignment to the higher tier's hourly equivalent.
2. Calendar Flat Rate Method
Calculation Logic: Establishes fixed dollar price points for Daily, Weekly, and Monthly rates rather than applying time multipliers.
Fixed Dollar Billing: Once assigned equipment usage crosses a defined migration threshold, ToolWatch charges that exact flat dollar amount for the period regardless of how many days are in the billing cycle.
Predictable Charges: Applying fixed dollar rates upon crossing migration points eliminates rate fluctuations between billing cycles.
Where to Set Migration Points
To configure migration points on a Tools & Equipment Rate Sheet:
Expand Job Cost and Billing in the navigation menu.
Click Rate Sheets.
Select your desired Tools & Equipment rate sheet.
Click View Rate Sheet.
Click Set Rate Sheet Rules... on the toolbar.
Update the following fields as needed:
Field | Description |
Hours in a Day / Week / Month | Defines how ToolWatch converts hours into time blocks (e.g., 8 / 40 / 160) |
Migrate to Daily Rate at | Establishes the threshold hours to trigger the Daily Rate |
Migrate to Weekly Rate at | Establishes the threshold hours to trigger the Weekly Rate |
Migrate to Monthly Rate at | Establishes the threshold hours to trigger the Monthly Rate |
7. Click Save to apply the rules globally across the rate sheet.
How It Appears on the Rate Sheet
For time-multiplier Calendar methods, each "Migrate to" field connects directly to an Effective Rate Per Hour column in the Rate Sheet grid:
"Migrate to" Threshold Field | Corresponding Rate Sheet Column |
Migrate to Daily Rate at | Effective Daily Rate Per Hour |
Migrate to Weekly Rate at | Effective Weekly Rate Per Hour |
Migrate to Monthly Rate at | Effective Monthly Rate Per Hour |
These columns calculate the rate per hour based on the corresponding threshold, making it easy to evaluate whether a rate is cost-effective at each level.
Setup Examples
Example 1: Time-Multiplier Decreasing Hourly Rate
A tool uses a standard Calendar method with a Daily Rate of $1 per hour ($8/day). The migration points are configured as follows:
Daily Threshold: 8 hours ($1.00 effective rate/hr)
Weekly Threshold: 24 hours ($0.90 effective rate/hr)
Monthly Threshold: 120 hours ($0.80 effective rate/hr)
Once equipment usage passes the 24-hour threshold, ToolWatch skips the Daily rate and applies the Weekly Rate equivalent ($0.90/hr) across all hours. If usage exceeds 120 hours, it promotes to the Monthly Rate ($0.80/hr).
Example 2: Calendar Flat Rate Fixed Dollar Billing
An item is configured with the Calendar Flat Rate method and the following rate entries:
Daily Rate: $50.00
Weekly Rate: $200.00
Monthly Rate: $700.00
Migration Thresholds: Daily = 8 hrs, Weekly = 40 hrs, Monthly = 160 hrs
When the tool is assigned to a project and reaches 40 hours of usage, ToolWatch triggers the Weekly migration threshold and applies the exact flat charge of $200.00 for that weekly period, rather than calculating hourly multipliers.
Tips & Pricing Strategies
Flat Hourly Pricing: If you want each tier to yield the exact same effective hourly rate under time-multiplier methods, enter rates that scale evenly (e.g., $10/hr = $80/day = $400/week = $1,600/month). ToolWatch will calculate equal Effective Rates Per Hour across all tiers.
Consistent Flat Rates: When using Calendar Flat Rate, ensure flat dollar amounts are entered in the Daily Rate, Weekly Rate, and Monthly Rate columns for every equipment row using this method.