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How can we split Labor burden to projects?


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Hello community,

How can we split the labor burden from payroll to projects by number of hours worked? So its like if a labor worked for 50 hours for 2 projects (30 for Project A & 20 for Project B) in a week how can I setup the system to evenly distribute these amounts into projects?

Thanks.

Best answer by pbennett

the payroll/project system will distribute the burden appropriately.

Alternatively you can calculate a total per employee (hour rate plus burden) and put that on the labor rates in Project. Project will use that rate for the project expenses.

there is additional setup to be done on both so make sure to ask your partner for help

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pbennett
Varsity II
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  • Varsity II
  • June 18, 2024

Hello Harshita,

the correct way of accomplishing what you want is by using Project in conjunction with the time entry system.

when employees enter time they specify how many hours they worked for each project and task. the system then captures the project expense as well as the payroll hours


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  • Captain II
  • June 18, 2024
pbennett wrote:

Hello Harshita,

the correct way of accomplishing what you want is by using Project in conjunction with the time entry system.

when employees enter time they specify how many hours they worked for each project and task. the system then captures the project expense as well as the payroll hours

So would it work by the usage of allocation rules?


pbennett
Varsity II
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  • Varsity II
  • June 18, 2024

the payroll/project system will distribute the burden appropriately.

Alternatively you can calculate a total per employee (hour rate plus burden) and put that on the labor rates in Project. Project will use that rate for the project expenses.

there is additional setup to be done on both so make sure to ask your partner for help


Laura02
Captain II
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  • Captain II
  • June 19, 2024

Hello @Harshita ,

Yes, Project Allocation Rules can be used to apply burden to Projects based on the quantity of labor hours posted to the projects from sources like Time Entry and/or AP bills posted to Accounts like subcontract labor expense. Here is an example Burden Allocation Rule, applying burden to Engineering Labor at a rate of $45 per hour posted to the project:

Connect the above Allocation Rule to each Labor task on the Tasks tab of the Projects.

Laura


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