Summary

The Flat Rate Labor feature is used to create Work Order module labor activity items using a different rate than the rate attached to the employee's pay code when a time card is created. The flat rate labor rate will be applied to the labor activity item by modifying the overhead applied to the labor activity item. When a time card line item is attached to a work order, the overhead applied to the activity item will calculate based on the flat rate set up in the WO module.

The flat rate labor feature will not affect the Payroll module time card. The PR time card line item will be generated using the rate on the PR employee record multiplied by the pay code multiplier, but the WO module labor item created by the time card line item will be applied based on the flat rate set up in the WO module on the employee account. The difference between the PR employee rate and the WO flat rate will be posted to the Work Order labor item as overhead.

The total amount of a WO module labor item is calculated using the following formula:

Hours x Pay Code Rate + Overhead = WO Labor Item Total

When Flat Rate Labor is not enabled in the WO Setup window, the overhead is calculated based on the labor overhead set up on the work order (WO> Work Orders> Work Orders> Open a work order> Defaults tab> Overhead Percentages section). By default, this will be the same overhead amount that was set up on the WO Setup window (WO> Utilities> Setup> Default Overhead section).

When the Flat Rate Labor is enabled the overhead will calculate based on the formula below.

 (Hours x WO module Flat Rate) - (Hours x Pay Code Rate) = Overhead

The Flat Rate Labor feature uses Overhead to store the difference between calculating the total amount based on the Pay Code and the flat rate in the Work Order module. If the WO module flat rate is greater than the pay code amount on the employee timecard, the overhead will be positive. If the WO module flat rate is less than the pay code amount, the overhead amount will be negative.

Follow this process to set up the Work Order module to use Flat Rate Labor and then create a flat rate for an employee and pay code.

Step by Step

1     View the Flat Rate Labor codes.

• Open the Flat Rate Labor Selection window (WO> Maintenance> Flat Rate Labor).
  • The Flat Rate Labor menu item on the Work Order Maintenance palette will only be enabled if the Use flat rate labor toggle is checked on the WO Setup window (WO> Utilities> Setup).
• The Flat Rate Labor Selection window will display all of the flat rate labor codes created in the application.
• Highlight a flat rate labor code and click the Delete icon to delete the selected rate code.
  • Flat rate labor codes that are attached to work orders cannot be deleted.
• Highlight a flat rate labor code and click the Modify icon to edit the selected rate code.
• Click the Create icon to create a new flat rate labor code. This will open the Flat Rate Labor Maintenance window.

2     Create a Flat Rate Labor code.

• Enter a unique flat rate labor Code.
  • This is a required field and can be up to 16 characters long.
• Enter a Description for the new code.
  • This field can be up to 48 characters long.
• Enter a Pay Code or click the field label to select one from a list.
  • Flat rates are created by employee and will be applied by pay code. A flat rate will not be applied to the WO activity item if the employee and pay code on the time card are not set up in the Flat Rate Maintenance window.
  • Pay codes are created and maintained on the Pay Code Maintenance window (PR> Maintenance> Pay Code).
• Enter a Rate for the flat rate labor code.

3     Attach employees to the Flat Rate Labor code.

• In order to use the new flat rate labor code, you will need to attach at least one employee.
• Click the Create icon to open the Employee Selection window.
  • Use the Search Criteria fields to filter the displayed employees.
  • Click the Confirm icon once all of the employees you would like to associate with the new flat rate labor code are selected.
  • Employees can be associated with multiple flat rate labor codes. However, if two flat rate labor codes are associated with the same pay code, an employee can only be associated with one of them.
• The Employees section will now display all of the employees associated with the flat rate labor code. You can add additional employees to the code by repeating the previous steps.
• Click the Delete icon to remove an employee from the code.
• Click the Save icon when complete.