A Labor Cost Rate is the hourly or weekly rate you pay an employee, and is used to determine the expense booked when an employee’s Time Card is posted in Accounting Seed.
Enter Labor Cost Rates
- Navigate to Accounting Home and click the Setup tab. Then, under the Master menu, click Labor Cost Rates.
- Click New. The New Labor Cost Rate dialog box displays.
- Click the Lookup icon to search for and select the Employee name.
- (Optional) Associate the Cost Rate to an existing Project/Project Task.
Note: Including a Project/Project Task provides the ability to create multiple Labor Cost Rates for the same Employee name.
- Enter either the Hourly Cost or the Weekly Salary Cost.
- If the employee is Hourly, you can insert an Overtime cost rate.
- Click Save.
- Hourly Cost is used for hourly job costing or standard costing. The number of hours worked times the hourly cost will the expense value posted to the ledger. There is no cap to this cost.
- Weekly Salary Cost is used for actual job costing of salaried employees. Cost is capped and is derived by taking the weekly salaried amount divided by the number of hours an employee works.
- Rates can include overhead or benefits burden in either method, if desired.
- A project and/or a project task can include more that one Labor Cost Rate. The most recently created Labor Cost Rate that was added to the project/project task will be used as the cost rate.
- Employees can only have either an effective hourly cost or an effective weekly salary cost, but not both.
- Employees must be active Salesforce users.