What is a Labor Rate Table?
When payroll transactions are interfaced to Billing and Revenue Management, they charge an activity for the actual cost of labor and the number of labor hours performed. A labor category value also is carried with each transaction.
The billing rate is determined by using a labor category value which comes from Payroll. It can be an employee number, a job code, a job class, a pay code, or an attendance code. The available labor categories vary by journal code on the transaction.
You can establish a labor rate table by activity, account category, summary account category or contract category group for each labor category you define. You determine the source of the transaction, the labor category, and the values for the labor category. You then assign a rate to each value.
The labor rate table is established at the level at which the time and materials billing record is set up.
Example
SBC established a labor rate table to capture the Job Code labor category from payroll transactions. The source is PW (payroll wages).
SBC's labor rate table looks like this:
| Job Code | Description | Rate |
|---|---|---|
| Bs Anlst | Business Analyst | $75.00 |
| Proj Lead | Project Lead | $65.00 |
| Env Trnr | Environmental Trainer | $65.00 |
| App Trnr | Applications Trainer | $70.00 |
The labor hours and Job Code are passed in the payroll transactions. The billable amount is calculated by multiplying the labor hours by the rate assigned to the Job Code.