By Labor Code Method
The By Labor Code labor billing method calculates labor billings based on the labor code used to charge labor to a project. You assign billing rates to labor codes in a labor code table.
This method lets you assign a rate to a specific work function (for example, Drawings) rather than to an employee. Employees may have several different rates per project.
You can specify different labor code descriptions and/or rates for each project or for each class of projects. An override table entry can override the employee’s rate.
Although the rate in the rate table or override table is typically the full billing rate, you can apply up to three multipliers to the rate.
A labor code table or labor override table is required with this method.
Calculation
The billing extension is calculated as:
Extension = Hours * Rate for the Labor Code * Multiplier(s)
Determination of Rate
To determine the billing rate for an employee, DPS uses the employee billing rate specified in the project's labor override table, or in the assigned labor code table specified at the time that the employee charged time to the project.
DPS follows this hierarchy:
- If an override table is associated with the project, and the employee appears in the table with a non-zero rate, DPS uses the employee’s rate specified in the table. DPS also applies any non-zero multipliers to this rate, regardless of the override rate type (Billing, Cost, or Maximum Cost Rate).
- If an override table is not associated with the project, if an employee appears in an override table with a zero rate, or if the employee does not appear in the project’s override table, DPS uses the rate associated with the timesheet transaction, as specified in the project’s labor code table. DPS then applies all non-zero multipliers to this rate.
- If no override table exists, but a labor code table is associated with the project, DPS uses the rate assigned to the employee in the labor code table.
- If neither an override table rate nor a labor code table rate exists for an employee, DPS uses a rate of zero for that employee.