Options for Setting Up Labor Costing Overrides

You can override the labor costing definition for individual employees and contingent workers for a business unit. The application uses a labor costing override to determine the labor rate for cost transactions.

You can use labor costing overrides to plan, budget, and forecast transactions when you use an actual plan types.

Following are the key implementation concepts for setting up labor costing overrides:

  • Override for a Person, Job, And Organization

  • People with Future-Dated and Terminated Assignments

Override for a Person, Job, and Organization

You specify the labor costing override for a person, or for a more granular override, specify a combination of person and job, or person, job, and organization.

The job and organization represent the human resources job and organization of the person. The jobs that you can select to associate with a labor costing override are based on the person value. The organizations that you can select are based on the job value. When you select a job, an organization is automatically selected by default. The default organization value is based on the selected job assignment. You can accept the default organization for the labor costing override, select a different organization that is associated with the job and person, or remove the organization so the labor costing override is for person and job combination.

In the example shown in the following table, a person is assigned the Nurse job in two different organizations. When you select Nurse to create a labor costing override, the application automatically selects the default organization General Hospital. You can accept the General Hospital default organization, or change the selection to the University Hospital organization, to create an override for the person, job, and organization combination. Alternatively, you can remove the organization value to create an override for the person, job, and any organization.

Job

Department

Organization

Person Type

Primary

Nurse

Administration

General Hospital

Employee

Yes

Nurse

Optometry

University Hospital

Contingent Worker

No

People with Future-Dated and Terminated Assignments

You can set up labor costing overrides for people with a start date in the future if you enable the People with Future Effective Start Dates as Project Members Allowed profile option. You can set up labor costing overrides for people with terminated assignments if you enable the Number of Days to Display People with Terminated Assignments profile option.