Global factor

A global factor is an amount or percent that represents a universal condition that commonly affects budget amounts. For example, a global factor can be the annual inflation rate, a cost of living increase, or projected productivity increases. You can forecast a budget amount by multiplying a global factor times a units budget.

If you create a global factor for an hourly labor rate for an employee or contract, then you can calculate an amounts budget based on the number of hours budgeted times the hourly rate. As the hourly rate changes, the new rate can be automatically applied to the budgets where the global factor previously was assigned.