Allocating Employee Realization

Use Employee Realization in Billing to allocate posted labor and units-related revenue to specific employees who work on a project. This allows you to measure the realization and contribution (profitability) of these employees.

The realization amount is the monetary amount of billed and unbilled revenue attributed to an employee. Realization hours are the number of hours on direct projects at the expected billing rate. Revenue that is associated with time records and employee-specific units is used for employee realization.

After you allocate employee realization, the amounts display on the following reports:

• Employee Labor Detail
• Time Analysis
• Invoice Transaction Detail Report

Turning on the Employee Realization Reporting Feature

To enable the Employee Realization Reporting feature, set the Enable Reporting Realization by Employee option to Yes in Settings > Accounting > Labor Options. You also select the calculation method (Cost, Billing, or Hours) and frequency (Invoice or Period).

When you select the Invoice frequency, employee realization is calculated and allocated automatically when you create invoices in Interactive Billing or Batch Billing. When you select the Period frequency, employee realization is calculated and allocated when you select Employee Realization on the Billing menu. In Settings > Accounting > Units, you specify whether or not a unit has employee-specific revenue.

Warning:

Deltek recommends that you consistently use only one frequency for a project, either the invoice frequency or the period frequency, to calculate employee realization for a project. Allocating employee realization using different frequency methods for one project in both Interactive Billing/Batch Billing and Employee Realization during the life of a project can result in inaccurate, unexpected realization amounts. This is because one calculation method uses the time records billed against the invoice and the other uses the time records in a specific period.

Employee Realization Allocation

Depending on the frequency that you select for employee realization in Settings > Accounting > Labor Options, employee realization is allocated as follows:

• If you use Invoice frequency: Realization is allocated when you create invoices in Billing > Interactive Billing or in Billing > Batch Billing. The calculation includes time and employee-specific units billed against the invoice. The calculation uses only the invoice amounts that are associated with the general ledger revenue accounts that are set up for the employee realization calculation in Settings > Accounting > Labor Options.
• If you use Period frequency: You allocate realization in Billing > Employee Realization. Timesheets are included in the realization calculation based on the projects and range of periods that you select on the initial Employee Realization Allocation form. You also choose whether or not to include labor adjustments and Interactive Billing modifications in the calculation. The calculation includes time and employee-specific units that have been billed. The calculation uses only amounts that are associated with the general ledger revenue accounts that are set up for the employee realization calculation in Settings > Accounting > Labor Options.

Multiple Companies

If you use multiple companies, only the realization for the projects of the active company is calculated when you run Employee Realization.