About funding models

Funding models refer to the ways in which program fees are financed and structured across the parties involved in a contingent workforce program. Understanding your program’s funding model is important when configuring fees on engagements in Beeline Professional, as the model determines whether fees are additive or deductive in timesheet calculations.

Program fees in Beeline Professional

Program fees are the costs associated with managing and operating a contingent workforce program. These typically include fees charged by a Managed Service Provider (MSP) and/or a Vendor Management System (VMS) provider. Common examples of how these fees are referenced in Professional include:

MSP Fee: Charged by a third-party MSP managing the program on behalf of the client, or by an internal Vendor Management Office (VMO)
VMS Fee / Beeline Fee: Charged for use of the Beeline Professional platform

In Professional, program fees are configured as rates on each engagement and are calculated at the time a worker submits their timesheet. For example:

Bill rate = $100.00/hr
MSP Fee = 0.02 x bill rate (2%)
VMS Fee = 0.006 x bill rate (0.6%)

For more information on how fees are configured on engagements, see Configuring fees on engagements.

Supported funding models

Beeline Professional supports two funding models:

Client-funded model
Supplier-funded model

Client-funded model

In a client-funded model, the client directly pays for program fees. Fees are configured as positive values on the engagement and are added to the worker’s bill rate amount when calculating the client amount.

Table 1. Client-funded model fees example
Date	Worker	Hours	Rate	Amount	MSP Fee	VMS Fee	Supplier Amount	Client Amount
1 Jan	Jo Smith	8	$100.00	$800.00	$16.00	$4.80	$800.00	$820.80

In this model, the supplier receives the full bill rate amount and the client pays the bill rate plus fees.

Supplier-funded model

In a supplier-funded model, program fees are passed to the staffing supplier as a cost of doing business. Fees are configured as negative values on the engagement and are deducted from the supplier amount when calculating the timesheet total.

To implement a supplier-funded model in Professional, fees are configured using negative multipliers. For example:

MSP Fee = -0.02 x bill rate (-2%)
VMS Fee = -0.005 x bill rate (-0.5%)

Table 2. Supplier-funded model fees example
Date	Worker	Hours	Rate	Amount	MSP Fee	VMS Fee	Supplier Amount	Client Amount
1 Jan	Jo Smith	8	$100.00	$800.00	-$16.00	-$4.80	$779.20	$800.00

In this model, the client pays the bill rate amount and the supplier receives the bill rate minus fees.

Important considerations

Beeline Professional is designed to give programs flexibility at the engagement level rather than through a global funding model setting. The funding model is implemented through the sign of the fee multiplier which is positive for client-funded, negative for supplier-funded. This means each engagement’s fees must be configured consistently with your program’s intended funding model.

Fees can be configured directly on an engagement or defaulted automatically based on your organization’s business rules during the onboarding process.