Intercompany trade scenario LaborThe intercompany trade scenario Labor is used to determine the intercompany trade amount that the department of the employee who books the hours charges internally to the department on whose behalf the hours are booked. Hours are booked in these sessions: These price origins are available to determine the internal amounts for hours: Cost-Plus The cost plus amount is based on the actual costs of the hours specified in the hours related sessions in People. You can add a markup percentage to this amount in the Intercompany Trade Agreement (tcitr1600m000) session. Note For intercompany trade orders originating from service orders or work orders, the markup percentage is determined by the setting of the Cover Labor Overhead Costs in Employee Department check box in the People Parameters (bpmdm0100m000) session. If this check box is selected, the markup percentage is based on the labor rate and the service overhead rate specified for the labor rate applicable to the employee. These rates are determined in the Labor Rate Code - Rates (tcppl0191m000) or Specific Labor Rates (tcppl0192m000) sessions. Commercial Price The commercial price for the hours spent on a project or an order by an employee is determined by the intercompany rate specified for the labor rate applicable to the employee. Additionally, you can add an intercompany rate surcharge to internally book special rates for activities such as overtime, travel time, or training time. An intercompany rate surcharge is added to a labor type in the Labor Type - Surcharges (tcppl0131m000) session. Example An employee from another department is hired at USD 40 per hour for normal time and USD 50 for overtime. For overtime, an intercompany rate surcharge of 25% is specified to compensate the employee's department. Labor rates Labor rates (that include the intercompany rates) can be added to an employee, an employee’s department or trade group in these sessions: To determine which of these labor rates is used to determine the intercompany rate for the current intercompany trade relationship and intercompany trade scenario, you can set the priority in the Search Path field of the Intercompany Trade Agreements (tcitr1100m000) session. Intercompany rates for labor rates are specified in the Intercompany Rate field of the Labor Rate Code - Rates (tcppl0191m000) session.
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