Effective Dates and Cost Rates Hierarchy

After you create cost rate tables, you can associate the tables with individual projects, employees, or both. The cost method that you choose when you associate a cost rate table with a project or employee determines how DPS applies cost rates for employee timesheet transactions and billing transfers when those transactions are posted to your projects.

• Projects Hub: Associate cost rate tables with your projects using the Cost Method and Cost Table fields on the Accounting tab of the Projects hub. Specify a different cost rate method, table, or both at each level of a project's work breakdown structure.
• Employees Hub: Associate cost rate tables with employees using the Cost Rate Table Method and Cost Rate Table fields on the Accounting tab of the Employees hub. The cost rate method and table selections on this tab override the cost rate information that is entered on the Accounting tab of the Employees hub.

Cost Rates Hierarchy

When you post employee timesheet transactions to a project, DPS looks first at the project record and then at the employee record (if necessary) to determine how to apply cost rates.

DPS uses the first setting it finds, based on the following hierarchy:

1. Projects hub record for task: Cost Method field on the Accounting tab.
2. Projects hub record for phase: Cost Method field on the Accounting tab.
3. Projects hub record for project: Cost Method field on the Accounting tab.
4. Employees hub: Cost Rate Table Method field on the Accounting tab.
5. Employees hub: Rate field in the Job Cost section on the Accounting tab.

Project Cost Rate Methods (Hierarchy Levels 1 through 3)

Because DPS looks first at the project record, the options that you select in the Cost Method field on the Accounting tab of the Projects hub (at the lowest level of the work breakdown structure) determine how cost rates are applied. The options are:

• None: This is the default option. When you select this option, DPS moves up the work breakdown structure and uses the first Cost Method specified (if any), for the project.
• From Employee Cost Rate: When you select this option, DPS uses the cost rate that is specified for the employee in the Employees hub.
• From Labor Rate Table, From Category Rate Table, From Labor Code Table: When you select one of these options:
  • And the employee is not covered by the table selected in the Rate Table field, DPS uses the cost rate that is specified for the employee in the Employees hub.
  • And the employee is covered by the table selected in the Rate Table field, DPS uses the employee's cost rate from the table, if the timesheet detail date is on or after the effective date specified on the table. If the timesheet detail date is before the effective date specified on the table, DPS uses the cost rate specified in the Employees hub.
  • And the employee is covered by the table selected in the Rate Table field, but no effective date is specified for the employee, DPS uses the employee's cost rate from the table, regardless of the timesheet detail date.

Employee Cost Rate Methods (Hierarchy Levels 4 through 5)

Based on your selections at the project level, DPS may or may not consider the employee's record in the Employee hub. DPS considers the employee record if any of the following apply:

• The Cost Method for all levels of a project's work breakdown structure is set to None.
• The Cost Method for the project is set to From Employee Cost Rate.
• The employee is not covered by the Labor Rate Table, Category Rate Table, or Labor Code Table specified for the project.

If DPS looks at the employee record, the option that you select in the Cost Rate Table Method field on the Accounting tab of the employee record determine how cost rates are applied. Your options are:

• None: This is the default option. When you select this option, DPS uses the employee's cost rate as specified in the Job Cost Rate field on the Accounting tab of the Employees hub.
• From Labor Rate Table, From Category Rate Table, From Labor Code Table: When you select one of these options:
  • And an effective date is specified for the employee, DPS uses the employee's cost rate from the table, if the timesheet detail date is on or after the effective date that is specified on the table. If the timesheet detail date is before the effective date specified on the table, DPS uses the cost rate that is specified on the Accounting tab of the Employees hub.
  • And no effective date is specified for the employee, DPS uses the employee's cost rate from the table, regardless of the timesheet detail date.