You use labor multipliers when you want to apply only one multiplier to raw labor cost for billing purposes. If you need to apply many multipliers to the raw cost for billing, use burden schedules or burden schedule overrides for revenue and invoicing to record the appropriate multipliers. You can also use labor multipliers with standard burden schedules as explained below.
Oracle Projects calculates the revenue or bill amounts (or both) for this task's labor items using the following formula for items based on bill rate schedules:
Revenue or Bill Amounts = Labor Multiplier * Raw Cost
Oracle Projects calculates the revenue or bill amounts (or both) for this task's labor items using the following formula for items based on burden schedules:
Revenue or Bill Amounts = Burdened Amount * (1 + Labor Multiplier)
If no override revenue or invoice burden schedules exist, Oracle Projects uses the multiplier on top of the standard revenue and invoice burden schedule. The following table shows an example of use of the labor multiplier:
| Cost | Amount |
|---|---|
| Labor Raw Cost | 1,000 |
| Standard Multiplier (1.5) | 1,500 (from standard burden schedule) |
| Total Burdened Labor | 2,500 |
| Negotiated Multiplier (1.0) | 2,500 (from labor multiplier) |
| Final Burdened Labor | 5,000 |
To enter labor multipliers, you must select and expand Bill Rates and Overrides from the list of options in the Projects, Templates window. You specify the following information for this option:
Multiplier: Enter the labor multiplier you want to use for this project or lowest task.
Effective From/To: Enter the date range the labor multiplier is effective.