Processing Overtime
Distribute Labor Costs performs three steps to process overtime:
- Create cost distribution lines
Calculate Overtime Cost
Oracle Projects calculates premium overtime cost (raw cost) for overtime items using a labor cost rate that corresponds to the type of overtime worked:
Premium Overtime Cost =
(Hours Worked X Employee's Cost Rate) X Labor Cost Multiplier
Overtime may or may not be burdened, depending on your burdening setup.
Run AutoAccounting
After the process calculates cost for each selected expenditure item, it runs AutoAccounting to determine account codings for each cost distribution line that the process creates.
If an organization distribution override exists, then the destination organization of the override supersedes the actual expenditure organization of affected items.
Create Cost Distribution Lines
After the process runs AutoAccounting, it creates cost distribution lines. Each item originally has one distribution line for raw cost. If an item is re-costed and the cost rate or account coding changes, Distribute Labor Cost creates a reversing cost distribution line and a new line for the updated cost or account coding.
