Title: Daily cost rate (vs hourly cost rate)
Some companies pay employees a daily rate vs an hourly rate. While Unanet has yet to support a daily cost rate via default functionality, you can emulate a daily cost rate via the steps below. Note that this is possible only for hourly employees and non-employees (users with a Classification of "Non-Exempt" or "Non-Employee" in their Person Profile Rates tab.
What’s covered in this document:
Initial Setup Steps
- Ensure that the Pay Code dropdown menu is visible on the timesheet. (Admin > Properties > Time > Edit Settings > Hide Pay Code On Timesheet Edit is not selected)
- Pay Codes: Set up two pay codes. (Admin > Setup > Time > Pay Codes)
- Daily Rate Pay Code, set to a cost factor of 1.
- Remaining Daily Hours or Day Rate Other Hours, set to a cost factor of 0.
- For anyone eligible for Daily rates, the Person Profile Rates tab Classification must be set as Non-Exempt or Non-Employee.
Navigate to People > List > List tab > Edit Pencil Icon > Rates tab.
*Note: This can also be accomplished by having two projects; one with default pay code of DAYRATE and one with default pay code of DAYOTHRHRS. Using this method will eliminate the need to show Pay Code on timesheets.
Person Assignment to Project/Task: In Project Profile > People Assignmentas, you must override the person cost rate to reflect the total of the daily rate. In most cases, the calculation should be the person's profile cost rate multiplied by business hours in a day (typically 8 hours/day). In some cases, there may be a negotiated daily rate for a particular time period or for a particular assignment. If that is the case, the negotiated amount will be entered into the override on the person cost rate.
- Timesheet entry
- User will place one (1) hour for the day to the Daily Rate pay code.
- User will place the remaining hours worked for the day to the Remaining Daily Hours pay code.
Business Rules Enforcement/Validation Stored Procedure (VSP) option
Optionally, you can implement a validation stored procedure to ensure that daily rate projects require that both pay codes are charged for any day where hours exist on that project.
In the example stored procedure requirements below, Project UDF07 is used to indicate that the project is a daily rate project.
If Project UDF07 is set to “Day Rate” then the user cannot charge more than 1 hour per day to the DAYRATE pay code.
You may not enter more than 1 hour per day to the DAYRATE pay code.
Please enter the actual daily hours to the DAYOTHRHRS. And then only 1 hour to the DAYRATE pay code. .
If Project UDF07 is set to “Day Rate” then the user MUST charge 1 hour per day to the DAYRATE pay code.
Please enter 1 hour to the DAYRATE pay code.
When working on a Day Rate project, please enter your actual daily hours to the DAYOTHRHRS pay code and also enter 1 hour to the DAYRATE pay code.
Billing and Invoices
Whether the daily cost rate impacts billing and invoices will depend on the Billing Type of the project/tasks.
CP: The burdens will be applied to the daily cost rate and billed as daily cost plus burdens.
TM: Billing related to this labor will depend on the hourly rates you have specified in all assignments to that project/task.
FP: Billing/invoicing will not be impacted as the billing amount is not related to the cost rate and instead comes from the amount and date you specify in the project Billing set up for Fixed Price Items.
- Caution: If the person has other assignments, there could be more than the one project entered on the timesheet and thus the employee would receive additional monies over their daily rate. You will need to determine if this is correct for your business process. If not, you will need to remove other assignments from this individual.