If you are using AbtracOnLine reports for KPI’s it’s possible to balance the reporting of employees working overtime by looking at scaled cost rates.
Scaled cost rates spread an employee cost across their actual hours worked, as opposed to cost rates which work with the required hours for the period.
The following reports in Abtrac include an option for scaled cost rates:
- Invoice Listing
- Invoices vs Time and Disbursements by Project
- Fees & Cost by Employee, Client & Project
Scaled Cost Rates are a modified version of the cost rate. They effectively scale back the cost rate across an excessive number of hours to those specified in an employees required units per timesheet.
Here’s how it works:
If someone’s internal cost is $110.oo per hour for a 40 hour week but they worked a 50 hour week, then for the three reports above (after the timesheet is entered and committed) a scaled cost rate will adjust the hourly cost rate on each entry by the ratio of 40/50. The $5,500 value of work will be spread over 50 hours instead of the 40.
The calculations are shown below:
|Value of Employee Time (Cost Rate)
= Hours worked x Rate
50.00 x $110.00 = $5,500
|Value of Employee Time (Scaled Cost Rate)
= Hours worked x Scaled Rate
50.00 x $88.00 = $4,400
Scaled Rate = (Required Hours/Hours Worked) x Rate : (40.00/50.00) x $110.00 = $88.00
Here’s how scaled rates vs cost rates affect the following performance reports:
Invoice Listing Report
Invoices vs Time and Disbursements by Project
Fees & Cost by Employee, Client & Project
Abtrac KB# 2071