Employees are associated with a business group. You can charge an employee’s work to any of the operating units that are associated with the employee’s business group. If your business process allows an employee to work in a subset of these operating units, then set up labor rates for each of the operating units in which the employee works. You can set up different labor rates for the same employee in different operating units.

To implement Labor Costing in Oracle Projects, you must define labor costing rules and assign costing rule and rate schedule to each organization.

Define a labor cost multiplier

A labor cost multiplier is a value by which Oracle Projects multiplies an employee's labor cost rate to calculate the employee's overtime premium cost rates:

Labor Cost Rate * Labor Cost Multiplier = Overtime Premium Labor Cost Rate

Oracle Projects then multiplies this overtime premium labor cost rate by the number of overtime hours an employee works to calculate the overtime premium for that employee:

Overtime Premium Labor Cost Rate * OT Hours = Overtime Premium

You define a labor cost multiplier for each kind of overtime your business uses, such as double time.

Define a labor costing rule

A labor costing rule determines how an employee is paid. You define a labor costing rule for each pay type that your business uses.  When an employee charges time to a project, Oracle Projects processes the labor hours according to the employee's labor costing rule.

Organization Labour Costing rules
(Assigning Costing Rules and Rate Schedules)

To calculate labor costs, you must assign a costing rule to each organization. If a costing rule has a costing method of Rates, then you must also assign a cost rate schedule to each organization using the costing rule.

Overriding Labor Costing

For individual employees, you can enter the labor costing overrides. You can:

• Override the assigned costing rule.
• Override the assigned cost rate schedule.
• Enter an overriding cost rate.