<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ts/onlinemanual/000105" xml:lang="en">
   <Header>
      <Title>Labor rate procedure</Title>
      <Keyword type="header" order="d1e2793483">
         <Level1>Labor rate procedure</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>The <Link href="/baanerp/ts/glossary/glossary#LaborRate_ts" role="glossary">labor rates</Link> are specified in labor rate codes. The
		advantage is that the labor rates can be controlled centrally. This means that
		if the labor rate is changed, it is changed in every session in which that
		labor rate is used.</Paragraph>
      <Paragraph>Labor rates are usually
		specified as hourly rates. At company level, you can set the time unit (other
		than hour) on which the labor rates are based. Use the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000" role="session">Conversion Factors (tcibd0103m000)</GUIRef> or <GUIRef href="/baanerp/tc/mcs/tcmcs0101m000" role="session">Units (tcmcs0101m000)</GUIRef> session for time units to calculate the labor rate for
		the specified time.</Paragraph>
      <Paragraph>You can use labor rates
		to define the labor requirements lines for reference activities and planned
		activities, or to estimate the cost of activities related to service orders.</Paragraph>
      <Paragraph>Because you can define labor rates at several levels, ERP Enterprise selects the labor
		rates in the applicable sessions, as follows:</Paragraph>
      <GeneralSection ID="1">
         <SectionTitle>Resource Requirements (tsacm2120m000)</SectionTitle>
         <ProcedureList>
            <ListItem>The labor rate of the task that is linked to the <Link href="/baanerp/ts/glossary/glossary#000405" role="glossary">reference activity</Link>.</ListItem>
            <ListItem>The labor rate that is linked to the reference activity.</ListItem>
            <ListItem>The labor rate of the service center that is linked to the
			 reference activity.</ListItem>
         </ProcedureList>
      </GeneralSection>
      <GeneralSection ID="2">
         <SectionTitle>Planned Activity - Labor Requirements (tsspc2111m000)</SectionTitle>
         <ProcedureList>
            <ListItem>The labor rate of the task that is linked to the planned
			 activity.</ListItem>
            <ListItem>The labor rate that is linked the planned (reference)
			 activity.</ListItem>
            <ListItem>The labor rate of the skill that is linked to the planned
			 activity.</ListItem>
            <ListItem>The labor rate of the service center that is linked to the
			 planned activity.</ListItem>
         </ProcedureList>
      </GeneralSection>
      <GeneralSection ID="3">
         <SectionTitle>Service Order Estimated Labor Costs (tssoc2130m000)</SectionTitle>
         <Paragraph>You can link labor rates to the labor cost lines of service
		  order quotations. When you copy the quotation to a service order, ERP Enterprise copies the labor
		  rates of the quotation's estimated labor lines. In all other cases, the Labor
		  Rate remains empty.</Paragraph>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>Estimate is one of the available search path values for
			 actual labor rates in the search path fields of the <GUIRef href="/baanerp/ts/soc/tssoc0100m000" role="session">Service Order Parameters (tssoc0100m000)</GUIRef> session.</Paragraph>
         </Note>
      </GeneralSection>
      <GeneralSection ID="3">
         <SectionTitle>Service Orders Actual Labor Costs (tssoc2131m000)</SectionTitle>
         <Paragraph>In the search path fields of the <GUIRef href="/baanerp/ts/soc/tssoc0100m000" role="session">Service Order Parameters (tssoc0100m000)</GUIRef> session, you can specify a search path that ERP Enterprise uses to determine
		  the service order's actual labor rates. After you enter the spent labor hours
		  for a service order in the <GUIRef href="/baanerp/bp/tmm/bptmm1130m000" role="session">Service Order Hours (bptmm1130m000)</GUIRef> session, ERP Enterprise enters the labor rates of the first available search path value.</Paragraph>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>You can change the sales rate for an actual labor cost line
			 manually. However, any changes or additions to the lines in the <GUIRef href="/baanerp/bp/tmm/bptmm1130m000" role="session">Service Order Hours (bptmm1130m000)</GUIRef> session applicable for this line will use the sales
			 rate found considering the search path.</Paragraph>
            <Formula space-and-orientation="indented-estimated">
               <Figure space-and-orientation="indented-estimated">
                  <FigIntro>The following formula will then be used
			 to calculate the new sales rate:</FigIntro>
                  <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="139" width="580"
                            SRC="../images/tr_graph_formulalabor.jpg"
                            alt="[...]"/>
               </Figure>
            </Formula>
            <Paragraph>If the new total quantity is zero, the total sales amount
			 will also be zero. If the calculation of the new total sales amount results in
			 a negative amount, the amount will be zero.</Paragraph>
         </Note>
      </GeneralSection>
   </GeneralSection>
   <Note>
      <SectionTitle>Note</SectionTitle>
      <List>
         <ListIntro>If no labor rate is found for any of the search path values, ERP Enterprise enters the
		  following in the <GUIRef href="/baanerp/ts/soc/tssoc2131m000" role="session">Service Orders Actual Labor Costs (tssoc2131m000)</GUIRef> session:</ListIntro>
         <ListItem>Zero (0) for the service order's labor sales rate.</ListItem>
         <ListItem>The employee's labor rate for the service order's labor cost
		  rate.</ListItem>
      </List>
   </Note>
</ManualTopic>