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Oracle Projects calculates an employee's straight time labor cost using the hourly rate that you define.

(Labor Hours x Hourly Labor Cost Rate) = Straight Time Labor Cost

Labor cost rates must start on an expenditure starting day, and employees can have only one labor cost rate per expenditure week. This means that you can change an employee's cost rate only at the beginning of an expenditure week.

Note: In a multi-organization environment, employees are associated with a business group. An employee's work can be charged 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, you must set up labor rates for each of the operating units in which the employee works. The system allows you to have different labor rates for the same employee in different operating units.

Prerequisites

   Define employees. See: Employees and Employee Assignments.

   Define compensation rules. See: Compensation Rules.

   Specify the expenditure cycle start day in the Implementation Options window. See: Implemenation Options.

Defining Employee Cost Rates

   To define an employee cost rate:

1. In the Employee Cost Rates window, enter either the Employee Name or Employee Number.

2. Enter the Compensation Rule and hourly Rate for the employee.

Enter the Effective Dates during which the compensation rule and rate are valid for this employee.

3. Save your work.

See Also

Labor Cost Rates By Organization Listing

Fremont Corporation uses the Exempt compensation rule for employees Donald Gray and Amy Marlin, and the Compensated compensation rule for James Robinson.
Employee	Cost Rate	Compensation Rule
Donald Gray	40/hr	Exempt
Amy Marlin	35/hr	Exempt
James Robinson	30/hr	Compensated