Load Labor Rates
Use this process to select labor rates from the labor rate screens and to calculate the labor rates based on effective dates and rate types.
These labor rates are used to calculate revenue and billing.
This process selects labor rates for a PLC from the labor rate screens based on the information on the Manage Rate Sequence Orders screen for a project. After the correct labor rate screen has been identified, this process uses effective dates and rate types to calculate the labor rates and insert them on the Manage Project Labor History and Manage Open Billing Detail screens. The Manage Project Labor History screen is used in the computation of revenue and the Open Billing Detail screen is used in the calculation of bills for hours-based revenue and billing formulas.
The screens that are classified as labor rates screens include Manage Project Labor Categories (PLC), Link Project Labor Category Rates to Projects, and the Link PLC Rates to Employee/Vendor screen. You can have PLCs and related billing rates set up in any or all of these screens. Use the Manage Rate Sequence Orders screen to identify a sequence in which you want the Load Labor Rates process to select labor rates from the labor rate screens. After the correct labor rate screen is identified for a PLC, this process compares the effective date on the Manage Project Labor History and the Manage Open Billing Detail screens to the effective date range in the labor rate screen. This process selects the labor rate for the PLC where the effective date on the Manage Project Labor History and/or the Manage Open Billing Detail screen falls within the date range in the labor rate screen.
The Load Labor Rates process uses the rate type to do the final calculation of the labor rate for the PLC. See the labor rate screens for more information on how rate types are used in the calculation of labor rates. The process inserts the labor rate on the Manage Project Labor History and the Manage Open Billing Detail screens after the correct labor rate is selected and calculated.
If you selected the Use Goal Multipliers for Billable Value Calculations checkbox on the Projects tab of the Configure Project Settings screen, this process inserts labor rates for all projects including projects that are not hours-based. For hours-based projects, the process calculates labor rates as noted previously. For all other types of projects, the process sets the Rate Type field in the labor rates screens to A, and calculates the labor rate by dividing total labor cost by actual hours incurred.
You must run this program before computing revenue, billings, or billable value of cost incurred, and you must initialize PLC labor rates by project before running this program. The Revenue and Billing calculation programs use the labor rate stored in Labor History and Open Billing Detail, respectively, as the basis for revenue and billing amounts on projects with T&M or Loaded Labor formulas.
Note that this program updates labor rates by effective date; therefore, if you have posted labor adjustments, run this program again after posting the adjustments. The Billing Value report also uses the billing rate stored in Labor History, in addition to revenue and billing programs, as the basis for deriving the billing value of costs incurred.