Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Define Fully Burdened Labor Costs for Projects

Define Fully Burdened Labor Costs for Projects

  • For authorized users, set up the
    Worker Data: Fully Burdened Cost
     security domain and appropriate security groups.
  • Create compensation plans and compensation bases for assigning worker compensation.
  • Security:
    Set Up: Fully Burdened Cost Rate
     domain in the Projects functional area.
  • (Optional) Create project cost rate rules to define a group of workers. Workday defines groups based on a set of attributes such as worker location, job profile, or company.
You can configure a fully burdened cost rate definition to generate an hourly rate for a worker to cost the time spent on a project. You can also define the costing rate relative to scheduled weekly work hours, so a worker with fewer hours has a higher per-hour cost rate. In addition, you can apply separate overhead percentages for costs, such as benefits, to different worker groups.
  1. Access the
    Set Up Fully Burdened Cost Rate Definition
     task.
  2. Specify details for these fields:
    Option Description
    Compensation Basis
    Select a compensation basis that contains the components for calculating the earnings of a worker.
    Frequency
    Specify a frequency for calculating the hourly cost rate for a worker. Use the
    Maintain Frequencies
     task to add, edit, or delete frequencies to use for calculations. To base the cost rate on the scheduled weekly work hours of the worker, select
    Use Weekly Hours
    .
    Default Overhead Percent
    Specify a percentage of overhead costs to apply to the base cost for the worker.
    Overhead Rate Rule
    To define an overhead percent for a specific group of workers, select a
    Project Cost Rate Rule
    . A worker receives the overhead percent associated with the first overhead rate rule for which the worker meets the criteria. If there's no match, Workday uses the
    Default Overhead Percent
    .
    If a worker qualifies for multiple project cost rate rules, Workday applies the overhead rate for the first project cost rate rule that the worker qualifies for.
The fully burdened cost rate definition supports costing of projects based on condition rules and compensation. Workday uses costing rates to calculate time cost for projects and initiatives. You can see time cost in the project budget information when you view or edit a project. You can see time cost for initiatives when you analyze them.
To determine the cost rate for workers, Workday uses, in order:
  • Standard cost rate override.
  • Standard cost rate sheet.
  • Fully burdened cost rate.