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Employee Cost Rates

An employee cost rate is the hourly rate you pay an employee. Each employee must have a cost rate and a compensation rule. The combination of a cost rate and a compensation rule determines the raw cost of using a particular employee on a project. Oracle Projects also uses an employee's compensation rule to calculate that employee's overtime premium if you implement Oracle Projects to automatically create overtime expenditure items.

Oracle Projects calculates an employee's straight time labor cost using the hourly rate that you define.

(Labor Hours x Hourly Labor Cost Rate) = Straight Time Labor Cost

Labor cost rates must start on an expenditure starting day, and employees can have only one labor cost rate per expenditure week. This means that you can change an employee's cost rate only at the beginning of an expenditure week.

Note: In a multi-organization environment, employees are associated with a business group. An employee's work can be charged to any of the operating units that are associated with the employee's business group. If your business process allows an employee to work in a subset of these operating units, you must set up labor rates for each of the operating units in which the employee works. The system allows you to have different labor rates for the same employee in different operating units.


Defining Employee Cost Rates

   To define an employee cost rate:

See Also

Labor Cost Rates Listing

Labor Cost Rates By Organization Listing

Fremont Corporation uses the Exempt compensation rule for employees Donald Gray and Amy Marlin, and the Compensated compensation rule for James Robinson.
Employee Cost Rate Compensation Rule
Donald Gray 40/hr Exempt
Amy Marlin 35/hr Exempt
James Robinson 30/hr Compensated

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