By Category Method (Labor)
The By Category labor billing method calculates labor billings based on categories and rates defined in labor category tables, which are assigned to employees through the Employees hub.
You can override the default category specified in the Employees hub using a labor category table or override table. Although the rate in the rate table or override table is typically the full billing rate, you can apply up to three multipliers to the rate.
A labor category or labor override table is required with this method.
Calculation
The billing extension is calculated as:
Extension = Hours * Rate for the Category * Multiplier(s)
Determination of Rate
To determine the billing rate for an employee, Deltek uses the billing rate specified for the employee in an override or category table at the time that the employee charged time to the project. Override tables may override an employee's rate or an employee's category used to determine the rate.
Deltek follows the following hierarchy to determine the category and the rate:
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If the employee is associated with a category in an override table and the category has a non-zero rate, Deltek uses that rate. Deltek also applies any non-zero multipliers to this rate, regardless of the override rate type (Billing, Cost, or Max Cost Rate).
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If an override table exists for the project and the employee appears in the table with a rate of zero, Deltek overrides the employee’s category with the override category specified in the table. Deltek then locates the category’s entry in the project’s category rate table to determine the rate. Deltek also applies any non-zero multiplier to this rate, regardless of the override rate type.
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If the employee is not in the specified override table, or no override table is specified, Deltek uses the category and rate from the category rate table specified at the time of posting. Deltek then applies all non-zero multipliers to this rate.
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If the employee is not assigned to a category in the specified override or category table, Deltek retrieves the employee’s category from the Labor Category field on the Accounting tab of the Employees hub. If a category table is specified, Deltek refers to the table to determine the rate.
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If neither an override table rate nor a category table rate exists for the employee, Deltek uses a rate of zero for that employee.