Previous  Next          Contents  Index  Navigation  Glossary  Library

Process Straight Time

Distribute Labor Costs performs three steps to process straight time:

Calculate Straight Time Cost

Oracle Projects calculates straight time cost (raw cost) for expenditure items using the employee's labor cost rate:

Straight Time Cost = (Hours Worked X Employee's Labor Cost Rate)

Distribute Labor Costs uses the labor cost rate that is in effect for an employee as of the week ending date for each selected expenditure item. This amount can be overridden by the Labor Costing Extension to handle unique labor costing rules.

If an employee's labor cost is burdened, Oracle Projects calculates the burdened cost using the following formula:

Burdened Cost = (Straight Time Cost X (1 + Burden Multiplier))

To determine if a labor cost is burdened, Oracle Projects checks the project type of the project to which an expenditure item is charged. The burden multiplier is determined from the burden schedule (or burden schedule override) assigned to the project or task. In addition, Oracle Projects compares the expenditure item date to the effective dates of the burden schedule to determine the burden multiplier to use.

See Also

Labor Costing Extensions

Employee Cost Rates

Burdening

Run AutoAccounting

After the process calculates cost for each selected expenditure item, it runs AutoAccounting to determine account codings for each cost distribution line that it will create.

If an organization distribution override exists, the destination organization of the override supersedes the actual expenditure organization of affected items.

When you run the cost distribution programs for labor, expense reports, or usages and miscellaneous transactions, Oracle Projects redirects the Expenditure Organization to the "Override To" Organization if you have specified any of the following organization distribution overrides for the organization:

If you do not specify any of these overrides, Oracle Projects uses the Incurred by Organization or the Expenditure Organization.

Create Cost Distribution Lines

After the Distribute Labor Costs process runs AutoAccounting, it creates cost distribution lines. Each item originally has one distribution line for raw cost. If an item is re-costed and the cost rate or account coding changes, Distribute Labor Costs creates a reversing cost distribution line and a new line for the updated cost or account coding.

See Also

Accounting Transactions for Cost


         Previous  Next          Contents  Index  Navigation  Glossary  Library