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The estimated labor cost for a task is automatically computed when you assign resources that have an associated User Cost Rate. If multiple resources are assigned to the task, the individual costs of all resources are added to form the total Estimated Labor Cost for the task.
When the time entered by a resource is approved and marked costable, the actual labor cost of that task is automatically computed. For example, if you take up a project of painting a wall, the labor costs will be the money you pay the resources who are working on this wall.User Cost Rates
User cost rates are used to calculate the Estimated and Actual Costs of a task and defined at a Company level. This can however be overridden at the project level.
To define a user cost rate, you can set the regular and overtime cost rates per user. This defines the labor cost for each of the task’s resource.
Please note that when you change the User Cost Rate:
- The Estimated Cost is recomputed for all projects that are Not Archived and for tasks that are incomplete.
- The New rate is applicable to all time entries that are in Saved state after submission for approval.
- Time entries with Pending approval continue to show the old rate. The project manager can manually edit the time entry to change the rate if required.
- Actual Cost remains the same.
Material Cost
When a project requires machinery, equipment such as computers, the cost of purchasing or renting this equipment is the Material Cost. Travel or communication costs also add up as material costs. These can be incurred along the life of the project.
Material costs are entered at a task level. The actual Material Cost is computed automatically when an expense marked costable is approved.
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