Checklist: Setting Up Effective Dates for Cost Rates
Use cost/pay rate tables to specify the date on which a change will occur in the cost rate or pay rate that is associated with a specified labor rate, labor category, labor code, or labor override table. The date on which a change is to occur is the "effective date" of the change.
The checklist includes the steps to set up effective dates for cost rates. Although you use the same cost/pay tables to set up both cost and pay rates, the setup of pay rates is separate.
Use caution if you use labor codes. While a labor code lets you easily specify the cost rate for one type of labor throughout your enterprise, regardless of the employee or labor category, its inadvertent or improper use has potentially serious consequences. Labor codes at your enterprise may be numerous and complex with subtle differences among them. Any employee filling out a timesheet can select from all labor codes in your enterprise. Review your enterprise's labor code use and consider using a labor rate or labor category table instead.
| Step | Description |
|---|---|
| 1 | For each security role that is involved in effective date setup, specify full security access to the effective dates cost rates feature.
You do this in . |
| 2 | Enable effective dates for cost rates in . |
| 3 | Set up cost labor rate, category, and code tables. The tables list employees and specify how each employee's cost rates are affected by the effective dates feature. |
| 4 | Enter a cost rate method and rate table for each project, phase, and task that will use an effective date cost rate table. You can enter a method and table at the highest WBS (project) level, and then enter a method and table at one or more of the project's lower WBS levels to override the rate at the highest WBS level. |