Labor Costs and Rates in Planning

Labor costs are computed based on the estimated number of labor hours to complete work on the WBS element, multiplied by the "per hour cost rate" of resources assigned to the WBS element.

Labor costs of items at higher levels in the WBS, such as phases, are calculated by summing the costs of their descendants. Project Planning summarizes labor budget data automatically.

Changing Rates

Whenever you select a new rate method or rate table, click the Refresh Rates button to update the plan. When you confirm the change, Vision updates the cost and billing rates for all assigned resources, named or generic, and uses the referenced method, multiplier, and rate table on the Rates tab. The new rates will be reflected on all calculations within the plan. This refresh also calculates any previous rate overrides in the Labor Tab with the referenced rate table.

Date Based Rates

There may be multiple rates with different start and end dates set up for an employee. In these cases, Vision uses all dates that are appropriate for the calendar period where cost and billing amounts are being calculated, and will calculate the correct rate for that period.

Employee Provisional Rate Method

When the rate method on the Rates tab is set to From Employee Provisional Rate, and resources are selected, the employee provisional rates are placed in the rates columns in the Planning grids. These rates are used for all cost and billing calculations for that row. If you choose another rate method and click Refresh Rates, the provisional rates are removed and date based rates are calculated for the row.

Multicurrency

If you use the Multicurrency feature, an employee is assigned to his/her home company via the Organization field on the General tab of the Employee Info Center. The home company is the company that manages the employee's timesheet and expense report processes, and which is responsible for paying him or her.

• If the functional currency for the employee's home company matches either the cost currency or the billing currency for the plan, and you set the Labor Rate Method to From Employee Provisional Rate, Vision uses the employee's provisional rate on the Labor tab.

• If the functional currency for the employee's home company does not either the cost currency or the billing currency for the plan, and you set the Labor Rate Method to From Employee Provisional Rate, Vision sets the rate to zero on the Labor tab.