Overtime Methods
You can bill overtime in either of two ways. You can bill the premium part of an employee’s overtime pay as a cost, or you can show overtime hours separately on the invoice and bill them at a multiple of the regular rate.
Bill the Overtime Premium as a Cost
To bill the premium part of an employee’s overtime pay as a cost, you apply a project-based multiplier.
In the Overtime Method field on the Labor tab of the Billing Terms form, select Bill ovt premium as cost.
Show Overtime Hours Separately
You can show overtime hours separately on the invoice and bill them at a multiple of the regular rate. DPS offers two ways to calculate and separate overtime hours on the invoice:
- Based on the employee
- Based on the project
In the Overtime Method field on the Labor tab of the Billing Terms form, select either Sep ovt with employee percent or Sep ovt with project multiplier.
Regardless of the option you choose, DPS displays standard and secondary overtime hours on separate lines on the invoice.
For DPS to calculate charges correctly using either of these methods, employees must categorize hours as regular, overtime, or secondary overtime on their timesheets.
The calculation that DPS performs depends on the project’s labor billing method: Rate Times Multiplier or Rate Table. There are important differences between the two approaches.
| Situation | Sep ovt with employee percent | Sep ovt with project multiplier |
|---|---|---|
| Determining the Source for Multiplier Amounts |
DPS retrieves the
employee’s standard overtime multiplier from the Job Cost
OT Pct field on the Accounting tab of the
Employees hub, and the secondary overtime multiplier from the Job Cost
OT-2 Pct field.
This means that overtime markups can differ from employee to employee. This method is useful if, for example, your architects can bill for their overtime hours at a marked-up rate, but your designers cannot. |
DPS retrieves the standard markup from the
Overtime Multiplier field, and the secondary overtime multiplier from the
Overtime 2 field on the Labor tab of the
project’s Billing Terms form.
This means that the same multipliers apply to all employees who work on the project. This method is useful if all employees who work on the project can bill for their overtime hours at a marked-up rate. |
| Posting Timesheets | After you post a timesheet, you can no longer change the percentage in the OT Pct or OT-2 Pct fields in the Employees hub. | You can change the overtime markup after the timesheet file has been posted. |
| Inserting Labor Transactions | If you insert a labor transaction with overtime hours in Interactive Billing, DPS applies overtime based on the overtime percentage at the time of the insertion. If you change the overtime percentage after the insertion, the transaction does not reflect the changes. | If you insert a labor transaction with overtime hours in Interactive Billing, DPS applies overtime based on the current overtime multiplier, not based on the percentage specified at the time of insertion. If you change the overtime multiplier after the insertion, the transaction reflects the change. |