Configuring Margin

The margin calculation requires configuration prior to entering orders and assignments and calculating margins based on pay and bill rates. Your implementation team configures the values that the system uses in the margin calculation. Your organization bases these calculations on the costs associated with filling a position as well as the expected profit that is generated when you fill the order.

This topic discusses how to configure margin.

Page Name

Definition Name

Usage

Staffing Branch Page

BUS_UNIT_TBL_FO

Configure the fixed cost margin to be associated with each staffing branch.

Use the Staffing Branch page (BUS_UNIT_TBL_FO) to configure the fixed cost margin to be associated with each staffing branch.

Navigation:

Set Up Financials/Supply Chain > Product Related > Staffing > General > Branch/BU Mapping

To configure margin:

  1. Establish fixed costs by branch.

    Record the fixed cost margin for the system by branch on the Staffing Branch page. The fixed cost margin is the percentage of cost that is incurred for every hour of employee pay. The figure should be entered as a number (not percent) with a maximum of two decimal places. For example, if the burden rate is 12.98 percent, enter a margin estimator of 12.98.

    Some costs that should be used in the calculation of this percentage include: FICA (Federal Insurance Contributions Act), FUT (Federal Unemployment Taxes), SUT (State Unemployment Taxes), as well as other mandated payroll-related costs.

  2. Establish workers' compensation policy and rates.

    In your HCM database, select Set Up HCM > Product Related > Staffing > Workers' Compensation.