Page Comparison

Anchor
servicemanagement_creating_labor_8145 servicemanagement_creating_labor_8145

You can create labor rate groups based on pay code and position or based on pay code, position, and department. When you use pay code, position, and department, you create overhead groups and associate the overhead group with the labor rate group. Overhead groups are created in Service Management or Job Cost and are shared between the products.

...

For example, a technician may work three hours on a service call at $45 per hour. The billing rate of $135 would be calculated automatically for the customer's invoice. The pay rate per hour is $25 with overhead at 40%, plus fixed overhead at $10 per hour, resulting in a total cost per hour of $45. The total cost to the service invoice is $135.

...

1. Select Microsoft Dynamics GP > Tools > Setup > Service Management > Invoice Setup > Labor Rates.
2. Complete the following fields.
   • Labor Rate Group Name
     Create a name for the labor rate group.
   • Position
     Use the lookup window to select the position to which this labor rate should apply.

   • Pay Code
     Pay codes are used to distinguish between labor rate groups with the same name and position. Each group may have multiple billing amounts (rates) for a combination of positions and pay codes. For example, a Preferred labor group may have an overtime rate and a regular time rate for technicians, supervisors, and helpers.  

     Note

     Position and pay code set up in Microsoft Dynamics GP must match the position and pay code in Service Management's labor rate group.

   • Description
     Enter a description. For example, Supervisor - Regular or Supervisor - Overtime would differentiate one pay code from another.

   • Fixed OH per Hour
     The fixed overhead per hour is a flat amount charged to recoup overhead costs such as union fringe benefits paid per hour. The amount appears in the Extended Cost + Overhead field of the Added Costs window for labor. It constitutes the overhead portion of the amount - the extended portion is the pay rate multiplied by the number of hours.

   • OH Percentage
     The overhead percentage is a percentage charged to cover overhead costs, such as social security, workers compensation insurance, vehicle operating expenses, or unemployment taxes. Your overhead percentage may include general and administrative expenses that you may wish to apply as a percentage of labor cost. The OH Percentage field can contain up to five numbers. The amount appears in the Extended Cost + Overhead field of the Added Costs window for labor. It constitutes the overhead portion of the amount - the extended portion is the pay rate multiplied by the number of hours.

   • Billing Amount
     The Billing Amount field shows the rate charged for the labor group name, specific position, and corresponding pay code. Leave the field blank to create a zero-dollar billing amount.

3. Select Save to add the record to the scrolling window and add the labor group name to the Labor Rate Group Name lookup window.

...

Note
You must mark the setup option in the Service Options window to use overhead amounts from Job Cost. Without marking this setup option, you will not see the Overhead Detail Code window or the Overhead Group Setup window as specified in the following steps. See Choosing Service Options.

Step 1: Create Overhead Detail Codes

Overhead detail codes define how overhead amounts are calculated based on payroll costs. You can recognize indirect labor costs, not typically set up as cost codes on an hourly or piecework basis, as overhead. These costs are added to posted amounts for the details and are not identified separately on customer invoices.

...

Note
If you modify the overhead detail codes in the future, posted transactions will not be affected.

Step 2: Create Overhead Groups

Overhead group codes organize overhead detail codes logically per departments, positions, and pay codes. For example, you could set up detail codes for hourly compensation, overhead, and travel time. These details can be combined under a group code named Hour. The group code is applied to technicians assigned to the installation department.

...

.

...

Note

Facilitating setup by using All Since the number of combinations of department, position, and pay code for a given overhead group code can become quite large, you can facilitate the setup by entering the word All in any of those fields. For example, if all departments, all positions, and all pay codes have a general overhead detail code, All could be used with each of those items. If a specific combination of department, position, and pay code has a unique detail code, that combination will be used along with any All combinations for the overhead group that match the same criteria. For example, if the administration department, CEO position, and salary pay code combination had a special bonus overhead detail code, and the All departments, CEO position, and All pay codes combination also had a bonus overhead detail code, both detail codes would be used.

To create overhead groups:

1. Select Microsoft Dynamics GP > Tools > Service Management > Invoice Setup > Labor Rates > Overhead Group Setup.
2. Complete the following fields, as necessary.
   • Overhead Group, Description
     Use the Tab key to move from the name to the description.

   • Department, Position, Pay Code
     You can enter All in each of these fields. 

   • Detail Code
     Use the lookup to select the detail code.
3. Select Save.

Note
Overhead groups should be set up with different combinations of department, position, and pay code. For example, the combination of SRV, ENG, and HOUR should not appear in more than one overhead group.

Step 3: Create Labor Rate Groups

Labor rate groups are built using overhead groups created from Service Management or Job Cost. Use the Labor Rate Group Setup window to do this. You can also add a billing amount and description to each overhead group record.

...