Labor Methods

You must specify a labor billing method for each time and materials project that you want to bill. The labor method determines how Deltek extends labor charges on the invoice.

Specify the labor method on the Labor tab of the Billing Terms form.

Full Billing Rate

A full billing rate has no markups. You define billing rates in rate tables; these can be by individual employee, labor code, or by employee class code. You can use a full billing rate override with any cost-based labor method. You can define an Override Table to override as many employee rates as necessary.

Cost-Based Rate

When you use a cost-based rate, Deltek uses either the job cost rate at the time that the transaction was posted or an override rate that you specify in a rate table. You can then apply a multiplier to create the billing extension and additional below the line markups.

Labor Methods

Method	Summary
No labor billing	Labor is not billed for this project, phase, or task. This option is typically used when the job is fee-based.
Rate times multiplier	Extension = Hours * Cost Rate * Multiplier(s) Deltek uses the employee’s job cost rate (from the Employees hub) that was in effect when the labor was posted. To apply a billing rate, cost rate, or cost rate maximum override to this rate, create a labor override table. You can also apply up to three multipliers to the employee’s job cost rate or cost rate override. Many government contracts use the rate times multiplier method.
Rate table	Extension = Hours * Rate * Multiplier(s) The employee’s rate is specified in the project’s labor rate table. You can apply an override rate. Although the rate in an override table is typically a full billing rate, you can apply a cost override. Deltek also applies any labor multipliers that are referenced in the project’s labor billing terms. Although it is not typical to apply a multiplier to a pre-defined billing table rate, it is possible.
By category	Extension = Hours * Rate for the Category * Multiplier(s) Deltek first looks to see if there is a project-specific category table referenced. If so, Deltek finds the employee’s category as defined in that table and uses the billing rate assigned to that category. If the employee does not exist in the category table, Deltek uses the category defined in the Billing Category field in the Employees hub. In addition, you can specify an override table that contains an override rate or category for the employee. Deltek applies any labor multipliers that are referenced in the project’s labor billing terms. Although it is not typical to apply a multiplier to a pre-defined billing table rate, it can be done.
By labor code	Extension = Hours * Rate for the Labor Code * Multiplier(s) Deltek uses the rate for the labor code in the project’s labor code table. You can apply rate overrides. Although the rate in the labor code or override table is typically a full billing rate, you can apply up to three multipliers. Deltek applies any labor multipliers that are referenced in the project’s labor billing terms. Although it is not typical to apply a multiplier to a pre-defined billing table rate, it can be done. Smaller companies often use this method when they have one employee who fills multiple roles, such as Principal and Project Manager, on a project.