Deltek Vantagepoint Help

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Alternative to Labor Cross Charge

As an alternative to labor cross charging, you can use the work breakdown structure to set up a labor cross charge arrangement.

To do this, you define additional project tasks and phases, and then assign each phase or task to one of the organizations whose employees are working on the project.

Each organization is responsible for its portion of the project's contract. Organizations divide the project’s compensation among themselves, and each organization establishes a separate budget for their work. When employees fill out their timesheets, they charge time to the phase or task that is assigned to their organization.

This alternative approach involves significant manual setup, and you must monitor the additional phases or tasks more closely. In addition, organizations must negotiate contract amounts and monitor projects to ensure that employees from each organization charge their time to the correct phase or task.