Determining Labor Rates |
The labor rate for a labor charge is calculated using the following data hierarchy. The first non-zero labor rate found in the sequence is used.
Step 1. Outside work orders (performed on equipment or parts owned by customers)
Inside (normal) work orders (performed on equipment or parts owned or leased by the fleet organization)
Step 2. Department labor rate to compute labor costs on all labor charges posted to work orders for equipment units or parts assigned to that department.
Step 3. Individual labor rates entered for each employee to compute labor costs on all labor charges posted by or for that employee.
Step 4. Location labor rate for a location to compute labor costs on all labor charges posted at that location.
Step 5. Average system labor rate (as specified on the Rates and Markups tab of the Data -> Shop Activity -> Setup -> Options screen).
To calculate a standard labor rate for all employees with a non-zero labor rate, the average system labor rate is used. This rate is used to calculate standard cost per meter unit.
The flat rate and hourly rate labor charges for tasks are specified on the Basic Info tab of the Data -> Equipment Units -> Setup -> Equipment Class -> Class/Task Information screen.
You can apply a skill-based surcharge to the final labor rate for a labor posting. When calculating the labor rate, if the Equipment Resource's class has any Class/Task Employee Scheduling Employee Scheduling Skill types checked against the Employee's skill type, the system sums up any matching skill types and charges that rate per hour as a surcharge to add to the final labor rate.