In ToolWatch, every Rate Sheet row is assigned a Calculation Method. This determines how charges are calculated for each tool, material, or piece of equipment when it is assigned to a job.
Selecting the correct Calculation Method is the first and most important step in setting up Job Cost and Billing — it controls which fields are required, which rates are calculated, and what optional charges or credits can be applied.
What You'll Learn
In this article, you’ll learn:
What a Calculation Method is
The differences between Assignment, Calendar, Calendar Flat Rate, and Hourly Usage Methods
When to use each method
Which Rate Sheet fields are required or optional per method
What happens after a Calculation Method is selected
Which fields apply based on the Rate Sheet type (Tools & Equipment vs. Materials & Consumables)
1. What Is a Calculation Method?
A Calculation Method defines how ToolWatch will apply charges to an item when it is assigned to a project.
Once a Calculation Method is selected:
ToolWatch determines which fields are required.
Charges are calculated using the logic specific to that method.
The Base Value becomes locked, and future updates from the Model Record won’t apply automatically.
You can change the Calculation Method later, but you cannot remove it or revert the row to blank.
2. Overview of Available Calculation Methods
Method | How Charges Are Calculated | Common Use |
Assignment | A one-time flat charge applied each time the item is assigned, regardless of how long it is used | Low-cost tools, consumables |
Calendar (Time-Multiplier) | Charges based on elapsed assignment time (rounded to Minutes, Hours, or Days); rates vary by day/week/month | Standard equipment, tools assigned for multiple days |
Calendar Flat Rate | Fixed dollar charges applied daily, weekly, or monthly when equipment usage crosses global migration thresholds; resets each billing cycle | Predictable equipment pricing across billing cycles without time multipliers |
Hourly Usage | Charges only when usage hours are logged in the Equipment Usage Log | High-value or operator-tracked tools |
3. When to Use Each Method
🔹 Assignment Method
Use when:
You want a fixed, flat charge per assignment.
The duration of use is irrelevant.
Simplicity and predictability matter.
Common for: tape measures, hammers, job boxes.
🔹 Calendar Method (Time-Multiplier)
Use when:
Time-based charges matter (e.g., daily rental logic).
You need accurate cost based on assignment duration.
You want tiered pricing (daily, weekly, monthly) using time multipliers.
Common for: ladders, generators, compressors.
🔹 Calendar Flat Rate Method
Use when:
You want predictable, fixed dollar charges for daily, weekly, or monthly usage tiers.
You want to eliminate rate fluctuations between billing cycles caused by time-multiplier calculations.
Equipment usage crosses global migration thresholds set in Rate Sheet Rules.
Common for: heavy equipment or tools billed at fixed price points per tier.
Note: Configurable exclusively on ToolWatch Web for Pro, Pro+, and Enterprise subscription tiers.
🔹 Hourly Usage Method
Use when:
You record actual hours of use.
Charges must reflect true operation time of a Uniquely tracked tool.
Idle charges are desired for unused but assigned hours.
Common for: forklifts, scissor lifts, tracked machinery.
4. What Happens After You Select a Method
Once you choose a Calculation Method for a row:
The Base Value becomes locked (no longer updates from the Model Record).
New field columns may appear based on that method.
You must complete all required fields for the row to calculate charges.
ToolWatch prevents deletion of the method — only changes are allowed.
5. Rate Sheet Columns by Calculation Method and Sheet Type
Use the tables below to determine which columns apply to each Calculation Method based on your Rate Sheet type.
Tools & Equipment Rate Sheet
Supports Assignment, Calendar, Calendar Flat Rate, and Hourly Usage Methods
🔹 Legend:
✅ = Required ◯ = Optional — = Not Used
🟦 = Optional only for Unique ID tools 🟨 = Optional only for Quantity ID tools
Rate Sheet Column | Assignment | Calendar (Time-Multiplier) | Calendar Flat Rate | Hourly Usage |
Hourly Usage Rate | — | ✅* | — | ✅ |
Daily Rate | — | ✅ | ✅ | — |
Weekly Rate | — | ✅ | ✅ | — |
Monthly Rate | — | ✅ | ✅ | — |
Idle Rate | — | — | — | ◯ |
Maintenance Rate | — | 🟦 | — | ◯ |
Initial Charge | ✅ | — | — | — |
Return Credit | ◯ | — | — | — |
Minimum Charge | — | ◯ | ◯ | ◯ |
Maximum Item Charge | — | 🟦 | 🟦 | ◯ |
Maximum Job Charge | ◯ | ◯ | ◯ | ◯ |
Loss Charge | ◯ | ◯ | ◯ | ◯ |
Cost Code | ◯ | ◯ | ◯ | ◯ |
GL Charge Account | ◯ | ◯ | ◯ | ◯ |
GL Credit Account | ◯ | ◯ | ◯ | ◯ |
✅ Required – Must be completed for the method to calculate
◯ Optional – Available for all tool types
🟦 Optional – Only applies to Unique ID tools
🟨 Optional – Only applies to Quantity ID tools
*Hourly Usage Rate is only used in time-multiplier Calendar Methods when using Calendar (Minutes) or Calendar (Hours).
Materials & Consumables Rate Sheet
Supports Assignment Method only
Rate Sheet Column | Assignment Method Only |
Initial Charge | ✅ Required |
Cost Code | ◯ Optional |
GL Charge Account | ◯ Optional |
GL Credit Account | ◯ Optional |
Calendar, Calendar Flat Rate, and Hourly Usage Methods are not supported for Materials & Consumables.