Setup Considerations: Project Advanced Labor Costing
You can use this topic to help make decisions when planning your configuration and use of project advanced labor costing. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
With project advanced labor costing, you can prorate your salaried and nonsalaried labor costs using standard or fully burdened costing. Proration accounts for hours worked above or below scheduled hours.
Business Benefits
Project advanced labor costing helps you:
- Determine labor actuals by enabling you to adjust costs when worked hours differ from scheduled hours.
- Understand the impact of hours worked above or below scheduled hours, based on how your costs increase or decrease with proration.
- Define unique calculation types to prorate worker costs using the costing types, rates, and hours you want to include.
Use Cases
When salaried workers exceed or work less than their scheduled hours, you can use a calculation method to:
- Prorate labor costs up or down.
- Prorate all labor costs down using the base rate from the standard cost rate sheet or fully burdened cost rate definition as the maximum rate.
Questions to Consider
Questions | Considerations |
|---|---|
What aspects of worker labor do you need to base proration on? | You can calculate a factor that prorates worker costs based on your:
|
What time entries do you use to calculate your project labor costs? | You can prorate labor costs on these approved time entries:
|
Do you want to cost all your time entries using proration, including past time entries that already have cost amounts? | You can optionally prorate past time entries approved before the date you initiate the project advanced labor costing feature to recalculate these cost amounts. |
Do you have various groups of workers that you need to cost differently? | You can prorate worker groups by configuring cost calculation types, then assigning them to your project cost rate rules. |
What impact does advanced labor costing have on intercompany billable transactions? | Your intercompany billable transactions for time have a status of Pending Pricing until the advanced labor costing process completes. |
Recommendations
We recommend that you set up:
- Standard cost rate sheets or a fully burdened cost rate definition for all project workers. Workday uses these rates to determine prorated cost amounts.
- Advanced labor costing to run on a weekly recurrence. This configuration eliminates manual work and enables you to review your prorated cost amounts before you complete your month end processing.
Requirements
Either set up Workday Time Tracking or create ad hoc project transactions so you can log time against project work.
Limitations
No impact.
Tenant Setup
No impact.
Security
Domains | Considerations
|
|---|---|
Setup: Project in the Projects functional area. | Create and manage advanced labor costs using standard or fully burdened costing. |
Manage: Ad Hoc Project Costing in the Projects functional area.
Process: Project Billing in the Project Billing functional area. | Edit ad hoc project time transactions. |
Business Processes
You can use the
Ad Hoc Project Transaction Event
business process to review and approve ad hoc transactions on projects.Reporting
You can use these report data sources to create custom reports:
- All Time Blocks
- Ad Hoc Project Transactions
Integrations
Web Services | Considerations |
|---|---|
Get Project Advanced Labor Cost Calculation Types
Put Project Advanced Labor Cost Calculation Type | Create and preview advanced labor cost calculation types. |
Get Project Advanced Labor Cost Definitions
Put Project Advanced Labor Cost Definition | Initiate project advanced labor costing. |
Connections and Touchpoints
Project advanced labor costing interacts with these other areas in Workday:
Features | Considerations |
|---|---|
Project Labor Cost Capitalization | After you calculate advanced labor costs, you can use labor cost capitalization to recognize these project costs as long-term assets rather than short-term liabilities. |
Project Budgets | Advanced labor costing can help you better estimate and manage labor actuals for your projects. |
Intercompany Contracts | When you use advanced labor costing to prorate standard costs, you can use transfer pricing rate sheets to mark prorated costs up or down. |
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.