A Cost Rate it 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.
Summary of steps:
- From Accounting Home navigate to the Projects > Labor Cost Rates tab.
- Click the New button.
- Enter the Employee (lookup to a Salesforce User).
- Enter either the Hourly Cost or the Weekly Salary Cost.
- If the employee is Hourly you can insert an Overtime cost rate.
- Associate the cost rate to an existing project or project task (optional). This will allow for the creation of multiple labor cost rates by employee.
- 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.
- Employees can only have either an effective hourly cost, or an effective weekly salary cost, but not both.
- Employees must be active Salesforce users.