Labor rate procedure

The labor rates are specified in labor rate codes. The advantage is that the labor rates can be controlled centrally. This means that if the labor rate is changed, it is changed in every session in which that labor rate is used.

Labor rates are usually specified as hourly rates. At company level, you can set the time unit (other than hour) on which the labor rates are based. Use the Conversion Factors (tcibd0103m000) or Units (tcmcs0101m000) session for time units to calculate the labor rate for the specified time.

You can use labor rates to define the labor requirements lines for reference activities and planned activities, or to estimate the cost of activities related to service orders.

Because you can define labor rates at several levels, LN selects the labor rates in the applicable sessions, as follows:

Resource Requirements (tsacm2120m000)
  1. The labor rate of the task that is linked to the reference activity.
  2. The labor rate that is linked to the reference activity.
  3. The labor rate of the service center that is linked to the reference activity.
Planned Activity - Labor Requirements (tsspc2111m000)
  1. The labor rate of the task that is linked to the planned activity.
  2. The labor rate that is linked the planned (reference) activity.
  3. The labor rate of the skill that is linked to the planned activity.
  4. The labor rate of the service center that is linked to the planned activity.
Service Order Estimated Labor Costs (tssoc2130m000)

You can link labor rates to the labor cost lines of service order quotations. When you copy the quotation to a service order, LN copies the labor rates of the quotation's estimated labor lines. In all other cases, the Labor Rate remains empty.

Note

Estimate is one of the available search path values for actual labor rates in the search path fields of the Service Order Parameters (tssoc0100m000) session.

Service Order Actual Labor Costs (tssoc2131m000)

In the search path fields of the Service Order Parameters (tssoc0100m000) session, you can specify a search path that LN uses to determine the service order's actual labor rates. After you enter the spent labor hours for a service order in the Service Order Hours (bptmm1130m000) session, LN enters the labor rates of the first available search path value.

Note

You can change the sales rate for an actual labor cost line manually. However, any changes or additions to the lines in the Service Order Hours (bptmm1130m000) session applicable for this line will use the sales rate found considering the search path.

The following formula will then be used
			 to calculate the new sales rate:
.

If the new total quantity is zero, the total sales amount will also be zero. If the calculation of the new total sales amount results in a negative amount, the amount will be zero.

Note

If no labor rate is found for any of the search path values, LN enters the following in the Service Order Actual Labor Costs (tssoc2131m000) session:

  • Zero (0) for the service order's labor sales rate.
  • The employee's labor rate for the service order's labor cost rate.