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Labor Costing Definitions

Compensation Rules

A compensation rule determines how an employee is paid. You define a compensation rule for each pay type your business uses. For example, you can define a compensation rule for pay types such as exempt, non-exempt, uncompensated, compensated, or hourly.

When an employee works overtime on a project, Oracle Projects processes the overtime hours according to the employee's compensation rule. For example, if an employee's compensation rule is Hourly, the employee is eligible for overtime pay; if the employee's compensation rule is Exempt, the employee is not eligible for overtime pay.

You can also use compensation rules in your AutoAccounting rules.

Defining Compensation Rules

If your organization enters and calculates overtime hours manually, you can specify defaults for Oracle Projects to use when you enter overtime hours for an employee classified by this compensation rule. These values default to the Expenditure Items window.

Prerequisites

   To define a compensation rule:

Note: You must define the compensation rules listed in the Fremont example below to use the example Overtime Calculation program provided by Oracle Projects.

Note: If you want to assign a labor cost multiplier to a project's task, you must enter a Project Number and a Task Number in the Defaults for Overtime Entry region.

See Also

Effective Dates

Overtime in Oracle Projects

Entering Pre-Approved Expenditure Batches

Compensation Rules Listing

Fremont Corporation uses the Oracle Projects Overtime Calculation program to automatically calculate overtime instead of calculating it manually. The following information defines only part of Fremont's compensation rules definition.
Compensation Rule
Name Exempt
Overtime
Overtime Expenditure Type Overtime
Compensation Rule
Name Hourly
Overtime
Overtime Expenditure Type Overtime
Compensation Rule
Name Compensated
Overtime
Overtime Expenditure Type Overtime


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