Overtime Method Overview
You can bill overtime in one of two ways. You can bill the premium part of an employee’s overtime pay as a cost, or you can show overtime hours separately on the invoice and bill them at a multiple of the regular rate.
Bill the Overtime Premium as a Cost
To bill the premium part of an employee’s overtime pay as a cost, you apply a project-based multiplier.
In the Overtime Method field on the Labor tab of the Billing Terms form, select Bill ovt premium as cost.
Show Overtime Hours Separately
You can show overtime hours separately on the invoice and bill them at a multiple of the regular rate. Vision offers two ways to calculate and separate overtime hours on the invoice:
- Based on the employee
- Based on the project
In the Overtime Method field on the Labor tab of the Billing Terms form, select either Sep ovt with employee percent or Sep ovt with project multiplier.
Regardless of the option you choose, Vision displays standard and secondary overtime hours on separate lines on the invoice.
For Vision to calculate charges correctly using either of these methods, employees must categorize hours as regular, overtime, or secondary overtime on their timesheets.
The calculation that Vision performs depends on the project’s labor billing method: Rate Times Multiplier or Rate Table. There are important differences between the two approaches.
| Situation | Sep ovt with employee percent | Sep ovt with project multiplier |
|---|---|---|
| Determining the Source for Multiplier Amounts | Vision retrieves the employee’s standard overtime multiplier from the Job Cost
Ovt Pct field on the Accounting tab of the Employee Info Center, and the secondary overtime multiplier from the Job Cost
Ovt-2 Pct field.
This means that overtime markups can differ from employee to employee. This method is useful if, for example, your architects can bill clients for their overtime hours at a marked-up rate, but your designers cannot. |
Vision retrieves the standard markup from the
Ovt Multiplier field, and the secondary overtime multiplier from the
Ovt-2 Multiplier field on the Labor tab of the project’s Billing Terms form.
This means that the same multipliers apply to all employees who work on the project. This method is useful if all employees who work on the project can bill the client for their overtime hours at a marked-up rate. |
| Posting Timesheets | After you post a timesheet, you can no longer change the percentage at the Ovt Pct or Ovt-2 Pct fields in the Employee Info Center. | Unlike the Sep ovt with employee percent method, you can change the overtime markup after the timesheet file has been posted. |
| Inserting Labor Transactions | If you insert a labor transaction with overtime hours in Interactive Billing, Vision applies overtime based on the overtime percentage at the time of the insertion. If you change the overtime percentage after the insertion, the transaction does not reflect changes. | If you insert a labor transaction with overtime hours in Interactive Billing with the Sep ovt with project multiplier method, Vision applies overtime based on the current overtime multiplier, not based on the percentage specified at the time of insertion. If you change the overtime multiplier after the insertion, the transaction reflects the change. |