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Administrator Guide
Last Updated: 2026-03-13
Steps: Manage Project Advanced Labor Costs

Steps: Manage Project Advanced Labor Costs

Prorate salaried and nonsalaried workers' standard or fully burdened labor costs for hours worked above or below scheduled hours. You can use cost calculation types to define proration treatments and calculate a proration factor to:
  • Prorate approved project time blocks and ad hoc project transactions.
  • Understand the impact that overtime and over-utilized workers can have on your project cost.
  1. Configure the cost calculation types to define your proration treatments for your standard or fully burdened costs. You can preview how your configurations calculate the proration factor.
  2. Access the
    Maintain Project Advanced Labor Cost Calculation Assignment
     task and enter an effective date.
    You can assign only 1 cost calculation type per project cost rate rule. You can assign multiple rules to a cost calculation type.
    Some workers qualify for more than 1 rule in the list. Workday applies the rate for the first rule that the worker qualifies for based on attributes, such as:
    • Company
    • Job profile
    • Worker location
    When you submit this task, Workday immediately initiates advanced labor costing and discontinues labor costing for all time transactions within your effective date range. Advanced labor costing initiates at:
    • The ad hoc project transaction submission.
    • The approval event for time entry logged against a project or project plan task.
    Before inactivating a calculation assignment snapshot, delete all scheduled advanced labor costing processes. Workday also recommends that you cost all approved time before inactivation.
    To inactivate a calculation assignment snapshot, return to this task and select the
    Inactive
     check box for your specified effective date.
    Security:
    Set Up: Project
     domain in the Projects functional area.
  3. (Optional) Access the
    Project Advanced Labor Costing Preparation
     task.
    Prorate these transactions previously approved before you initiated advanced labor costing:
    • Approved project time blocks.
    • Approved ad hoc project time transactions.
    Security:
    Set Up: Project
     domain in the Projects functional area.
  4. Access the
    Schedule Project Advanced Labor Costing
     task.
    Schedule concurrent costing processes to cost your approved time entries. Workday uses the most recent completed process for your standard or fully burdened cost amounts.
    The billing status of intercompany billable transactions for time is
    Pending Pricing
    , and your selected cost amounts display as zero for all projects. When this task completes, cost amounts calculate and become available for:
    • Approved project time blocks.
    • Approved ad hoc project time transactions.
    Also, let this task complete before you schedule a project labor cost summarization. Your summarization will post zero to the project company ledger if advanced labor costing is incomplete.
    Security:
    Set Up: Project
     domain in the Projects functional area.
  5. (Optional) Access the
    Recalculate Project Labor Costs
     task if you want to recalculate labor costs for approved time blocks and ad hoc project time transactions; for example, after changes to a rate sheet.
  • Create a custom report using the
    All Time Blocks
     or
    Ad Hoc Project Transaction
     report data source to track each worker's:
    • Reported standard or fully burdened cost amount in project currency.
    • Standard or fully burdened cost rate.
    • Proration group start date.
    • Cost calculation type.
    • Proration factor.
  • Manage Scheduled Future Processes to edit or update your scheduled project labor costing job.